Under a base-case scenario, with the looser target, the
price will be 32 euros a ton in the eight years, Deutsche Bank
said. "Our worst-case scenario could become our base-case
scenario over the next six to twelve months."
+------------------------------------------------------------------------------+
Deutsche Bank Says EU CO2 May Rise as High as 58 Euros by 2020
2010-09-28 13:59:19.873 GMT
By Mathew Carr
Sept. 28 (Bloomberg) -- European Union emission permits may
rise as high as 58 euros ($78.10) in the eight years through
2020 assuming the bloc sets a tighter emission target, Deutsche
Bank AG analysts said today in an e-mailed report.
Under a "worst case" scenario, the EU will increase its
emissions target in 2020 to a 30 percent cut from 1990 levels
instead of 20 percent, analysts Mark Lewis and Isabelle Curien
said. The region may impose within about six months restrictions
on the use of United Nations offset credits in the period, the
third phase of the EU emissions trading system, they said.
Under a base-case scenario, with the looser target, the
price will be 32 euros a ton in the eight years, Deutsche Bank
said. "Our worst-case scenario could become our base-case
scenario over the next six to twelve months."
EU carbon has jumped 24 percent this year on utility buying
and supply restrictions. The market is the world's biggest
greenhouse gas program by traded volume. Emission permits for
December rose as much as 1.8 percent to 15.66 euros a ton today
and were at 15.60 euros as of 2:42 p.m. on London's European
Climate Exchange.
The price may rise to 20 euros by the end of the year,
Lewis and Curien said.
For Related News and Information:
Top Power Stories: PTOP <GO>
Emissions-trading stories: NI ENVMARKET BN <GO>
Today's top energy news: ETOP <GO>
European power-markets home page: EPWR <GO>
--Editors: Rob Verdonck, Mike Anderson
To contact the reporter on this story:
Mathew Carr in London at +44-20-7073-3531 or
m.carr@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss on +44-20-7073-3520 or sev@bloomberg.net
