"Carbon looks set to break out of a downward channel,"
Andrew Ager, the London-based head of carbon and emissions at
Prudential Financial Inc.'s Bache Commodities Ltd., said in an
e-mailed note. "With the return of utilities after the summer
break and looming specter of renewed compliance buying, the risk
is to the topside."
+------------------------------------------------------------------------------+
EU CO2 Rises to Seven-Week High After Germany Sells Permits
2010-08-25 15:25:07.828 GMT
By Mathew Carr and Catherine Airlie
Aug. 25 (Bloomberg) -- Carbon-dioxide allowances in the
European Union emissions-trading system jumped as traders
anticipate more buying next week and as the United Nations-
overseen regulators crimp supply of some offsets.
EU carbon dioxide permits for December 2010 rose as much as
41 cents, or 2.7 percent, to 15.37 euros ($19.46) a metric ton
on London's European Climate Exchange, their highest since July
5. They were at 15.24 euros at 3:30 p.m. local time.
"Carbon looks set to break out of a downward channel,"
Andrew Ager, the London-based head of carbon and emissions at
Prudential Financial Inc.'s Bache Commodities Ltd., said in an
e-mailed note. "With the return of utilities after the summer
break and looming specter of renewed compliance buying, the risk
is to the topside."
Traded volumes of EU permits for December fell as low as
3,658 lots on the European climate Exchange on Aug. 16, the
lowest level this year, as traders went away for holidays.
Prices rose after the European Energy Exchange published
the clearing price for its sale of EU permits for the German
government. Some 570,000 European Union carbon-dioxide emission
allowances were sold for 15.16 euros a metric ton in an auction
today, the European Energy Exchange said on its website.
Prices of certified emissions reduction credits, generated
by developing countries, may rise this year as regulators review
industrial gas projects and Chinese wind energy facilities,
fueling speculation that supplies will slow.
Supply Squeeze
"There are fears of a supply squeeze because of fears
industrial gases will not be allowed to produce certified
emission reduction credits," said Henry Derwent, chief
executive officer and president of the Geneva-based
International Emissions Trading Association, in an interview
before the Carbon Forum Asia conference.
United Nations emissions credits, or CERs, for December
delivery rose 1.9 percent to 13.50 euros a metric ton on the
European Climate Exchange.
German business confidence unexpectedly rose to a three-
year high in August, suggesting the economy may not lose as much
momentum as some economists forecast after expanding at a record
pace in the second quarter. A speedy recovery to the German
economy may spur higher permit demand as emissions grow from
factories and businesses raising output.
For Related News and Information:
Top Power Stories:PTOP<GO>
--With assistance from Dinakar Sethuraman. Editors: John
Buckley, Randall Hackley
To contact the reporter on this story:
Mathew Carr in London at +44-20-7073-3531 or
m.carr@bloomberg.net
Catherine Airlie in London at +44-20-7073-3308 or
cairlie@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss on +44-20-7073-3520 or sev@bloomberg.net
