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EU Carbon Premium Over UN Offsets Rises to Widest in Nine Weeks
2010-10-19 09:58:02.864 GMT
By Catherine Airlie
Oct. 19 (Bloomberg) -- The premium of European Union carbon
permits for 2010 over offsets from the United Nations advanced
to its widest level in more than nine weeks as UN supply rises.
The spread between EU permits and UN credits for 2010,
traded as a separate contract increased as much as 11 cents, or
5.5 percent, to 2.10 euros ($2.92) a metric ton on London's
European Climate Exchange. That's the biggest gap since Aug. 16.
The spread was 2.05 euros at 10:55 a.m.
The spread between EU allowances and Certified Emission
Reductions from the UN "should slightly widen for all
maturities," Emmanuel Fages, the Paris-based head of power,
gas, carbon and coal research at Orbeo, said in an e-mailed
report yesterday. Orbeo is the carbon-trading venture of Societe
Generale SA and Rhodia SA.
There is "more downside risk" for CER prices, Fages said.
"The growth in CER issuances observed during recent weeks
should push price down." Some 2.98 million credits were given
out in the week through Oct. 19, according to data on a UN
website. Some 5.64 million have been handed out this month.
EU permits for December fell 0.8 percent to 15.26 euros a
metric ton as the equivalent UN CERs slumped 1.5 percent to
13.20 euros, according to data compiled by Bloomberg.
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: Mike Anderson, Alex Devine.
To contact the reporter on this story:
Catherine Airlie 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
