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EU Carbon Premium Over UN Offsets Widens as Lawmakers Mull Ban
2010-10-26 17:44:33.561 GMT
By Mathew Carr
Oct. 26 (Bloomberg) -- The premium of European Union carbon
permits for 2010 over offsets from the United Nations advanced
to its widest level since Aug. 10 as lawmakers consider banning
credits from some industrial-gas cutting projects.
The spread between EU permits and UN credits for 2010,
traded as a separate contract, widened 7 cents, or 3.3 percent,
to 2.17 euros ($3.01) a metric ton as of 6:18 p.m. on London's
European Climate Exchange. The UN has said it expects an
increase in requests for credits through 2012, which may boost
supplies and lower prices.
The European Commission, regulator of the EU market, is
expecting to publish an "impact assessment" regarding offset
restrictions by November. The commission is seeking to limit the
use of credits from projects deemed improperly regulated or
yielding excessive profits for developers. It may propose a ban
on credits from hydrofluorocarbon-cutting projects and others
that reduce nitrous oxide gas at industrial plants.
EU carbon permits for December fell 14 cents, or 0.9
percent, to 15.02 euros a ton on ECX. UN CERs for December
dropped 1.4 percent to 12.84 euros a ton.
For Related News and Information:
For a Chart on EU Carbon: MOZ0 <CMDTY> GP <GO>
For a Chart on UN Emissions: CARZ0 <CMDTY> GP <GO>
--Editors: Mike Anderson, John Buckley.
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
