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EU Carbon Rises for Fifth Week as German Power Erases Losses
2010-08-27 09:36:41.549 GMT
By Ewa Krukowska
Aug. 27 (Bloomberg) -- European Union carbon permits were
poised for a fifth weekly increase as electricity prices in
Germany, the bloc's largest economy, erased early losses.
EU permits for December rose as much as 1.4 percent to
15.48 euros ($19.68) a metric ton, nearing yesterday's two-month
high of 15.55 euros. The contract traded at 15.39 euros as of
9:45 a.m. on London's European Climate Exchange, gaining 2.1
percent this week.
"The price for the EU allowances for December 2010 will
gain good support during the coming days, particularly through
the return of utilities to the market," analysts at UniCredit
SpA wrote in a research note today. An increase above 15.61
euros could pave the way for the contract to break the mark of
16 euros, they said.
German baseload power for next year, a European benchmark,
reversed early losses and rose 0.2 percent to 51.45 euros a
megawatt-hour, according to broker data compiled by Bloomberg.
Higher power prices can boost the incentive to sell electricity
forward, stimulating demand for emission permits.
United Nations Certified Emission Reductions for December
2010 gained as much as 1 percent to 13.61 euros a ton, touching
the highest level since May 12. The offsets extended their gain
to almost 11 percent so far this month after regulators said
they are reviewing projects that reduce hydrofluorocarbons,
fueling speculation that the supply of credits will plunge.
CERs, awarded to projects that lower emissions in
developing nations, can be used to comply with the EU emissions
trading system, the world's largest cap-and-trade program.
For Related News and Information:
Emission market news NI ENVMARKET <GO>
Today's top energy stories ETOP <GO>
European power-markets home page EPWR <GO>
--Editors: John Buckley, Jonas Bergman
To contact the reporter on this story:
Ewa Krukowska in Brussels at +32-474-620-243 or
ekrukowska@bloomberg.net;
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
