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Bache, Credit Suisse Registered to Buy in U.K. CO2 Auctions
2010-09-13 15:42:10.108 GMT
By Catherine Airlie
Sept. 13 (Bloomberg) -- Bache Commodities Ltd., the London-
based unit of Prudential Financial Inc., became the first non-
banking business authorized to buy European Union carbon-dioxide
permits in auctions, the U.K. Debt Management Office said.
Credit Suisse Group AG was approved as a potential buyer
along with Bache, the Debt Management Office said in a statement
today.
The government has held back some of the carbon permits
allocated to it for sale via auction under the EU's cap-and-
trade program. Permit auctions generate revenue for the
government and prepare companies for 2013, when they will be
obliged to buy most of their permits instead of receiving them
for free. The Debt Management Office handles the sales.
"Auctions are a transparent and open way to allocate and
price these allowances," Andrew Ager, head of carbon and
emissions trading for Bache, said in an e-mailed statement
today. .
The nation will have sold about 85 million tons of EU
carbon allowances in the five years through 2012, said Bache,
the first non-bank buyer to register for the auctions. As many
as one billion tons of permits will be auctioned over the eight
years through 2020, according to Bache's statement.
Potential buyers in the auctions can bid via primary
participants registered under the Financial Services Authority.
Barclays Capital, BNP Paribas SA, JPMorgan Chase & Co. and
Morgan Stanley are among these primary participants.
Permit sales take place on an auction system run by
Bloomberg LP. Bloomberg, based in New York, owns Bloomberg News.
The next sale of 4.4 million permits is to be held on Oct. 7.
For Related News and Information:
EU emissions-trading stories TNI ECREDITS EU <GO>
Today's top environment news XTOP <GO>
--Editors: Bruce Stanley, Stephen Cunningham
To contact the reporter on this story:
Catherine Airlie in London at +44-20-7073-3308 or
cairlie@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
