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UN CO2 Credits Fall as Regulator Braces for Request 'Explosion'
2010-10-13 17:26:27.302 GMT
By Mathew Carr
Oct. 13 (Bloomberg) -- United Nations emission offsets
dropped to their lowest level in three weeks after regulators
said they need to brace for an "explosion" in requests from
project operators for credits through the end of 2012.
There's likely to be "an explosion of issuance requests,"
said Pedro Martins Barata, a member of the UN Clean Development
Mechanism's executive board. In a report it will present at this
year's global UN climate talks in Cancun, Mexico, the board
needs to highlight a probable "collapse" in investment in
emission-reduction projects stemming from a lack of targets
after 2012, he said today at a board meeting in Bonn.
UN Certified Emission Reduction credits for December
dropped 0.9 percent to 13.82 euros ($19.27) as of 5:42 p.m. on
London's European Climate Exchange. European Union allowances
for December fell 0.9 percent to 15.61 euros.
UN credits can be used for compliance in the EU system, the
world's biggest carbon market. Projects in developing nations
may make about 3,000 or 4,000 requests for credits through the
end of 2012, Connor Barry, an official in the CDM administration
team in Bonn, told today's meeting. There were 539 issuance
requests last year and 464 so far in 2010, David Abbass, a
spokesman for the program, said today by e-mail.
The board will be like "the orchestra on the Titanic"
unless it addresses the likely plunging investments and surging
requests for credits, Martins Barata said.
For Related News and Information:
Emissions-trading stories: NI ENVMARKET BN <GO>
Today's top energy news: ETOP <GO>
European power-markets home page: EPWR <GO>
--Editor: 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 at +44-20-7073-3520 or sev@bloomberg.net
