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EU May Start Carbon CER Limits Early, in 2012, Barclays Says
2010-10-05 15:52:55.706 GMT
By Mathew Carr
Oct. 5 (Bloomberg) -- European Union lawmakers could
"theoretically" set restrictions on the use of Certified
Emission Reduction credits starting in the 2012 compliance year
of its carbon-dioxide program instead of 2013, said an analyst
at Barclays Capital.
"Not only is there uncertainty over which types of credits
will be eligible in Phase 3, there does seem to be at least the
theoretical possibility that certain credits may not be
applicable in the last year of Phase 2," Trevor Sikorski, an
analyst at Barclays Capital in London, said yesterday in an e-
mailed research note.
"Such uncertainty will certainly make it harder for the
market to provide the hedges it needs and at least a statement
of intent from the European Commission that it does not intend
to propose restrictions to apply until after 1 April 2013 might
be useful," he said.
The second phase of the EU emissions program, the world's
largest, ends in 2012. The third runs for the eight years
through 2020. The CER emission credits from the United Nations-
administered Clean Development Mechanism can be used for
compliance in the EU greenhouse-gas trading program.
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: Stephen Voss, Randall Hackley
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
