nice day for a carbon trader with a half-good crystal ball? more comments our way
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Mathew Carr, emissions markets, energy reporter. London Bloomberg News ph +44 207 073 3531 yahoo ID carr_mathew
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EU Emissions for 2012 Fall as Bloc Sells to Fund Carbon Capture
2010-11-09 10:31:39.170 GMT
By Mathew Carr and Ewa Krukowska
Nov. 9 (Bloomberg) -- European Union emission permits for
2012 fell to a three-month low as the bloc started the first
portion of about 4.3 billion euros ($6 billion) in post-2012
allowance sales to get cash to store carbon dioxide underground.
EU carbon permits for delivery in December 2012 dropped as
much as 11 cents, or 0.7 percent, to 14.93 euros a metric ton on
London's European Climate Exchange, the lowest price since July
30. They were at 15 euros as of 10:07 a.m.
The EU invited bids for "clean coal" and renewable aid
that will come from the planned sale of as many as 300 million
tons of carbon allowances under the region's cap-and-trade
program. Today's announcement, expected at noon Brussels time,
will cover about 200 million tons of the permits, which will
come from a reserve set up for the post-2012 phase of the
system, the world's biggest greenhouse gas market.
Baseload power for 2011 in Germany, Europe's biggest
electricity market, slipped as much as 10 cents to 46.50 euros a
megawatt-hour, the lowest level since April 6, according to
broker data compiled by Bloomberg.
The European Investment Bank, the 27-nation EU's lending
arm, will sell the allowances to generate revenue for the
winning carbon-capture and renewable-energy projects. The EU
trading system imposes carbon quotas on around 12,000 power
plants and factories, forcing those that exceed their limits to
buy extra permits and allowing businesses that emit less to sell
their surplus.
The EU and EIB may say they will sell 100 million to 150
million tons of allowances by the end of 2012 in the program,
said Emmanuel Fages, an analyst at Orbeo in Paris. A sale of 200
million tons in that period "will be bearish" for prices,
Fages said today by phone. Orbeo is the emissions-trading
venture of Rhodia SA and Societe Generale SA.
Sales Timetable
Prices may not move much if regulators remain unclear on
when sales will take place, said Trevor Sikorski, an analyst at
Barclays Capital in London. "I think it would be a surprise if
we get information on timing with this announcement, so the
market is likely to be unmoved."
Prices may rise should the EU decide to delay sales until
later next year, London-based analysts including Clemens
Tummeltshammer at Bloomberg New Energy Finance said yesterday in
an e-mailed report. Prices may fall if the EIB sales occur at
the same time as an expected surge next year in supply of United
Nations offset credits, they said.
For Related News and Information:
Emission market news: NI ENVMARKET <GO>
Today's top energy stories: ETOP <GO>
European power-markets home page: EPWR <GO>
Top energy stories: TOP NRG <GO>
--Editors: Rob Verdonck, Raj Rajendran
To contact the reporters on this story:
Mathew Carr in London at +44-20-7073-3531 or
m.carr@bloomberg.net;
Ewa Krukowska in Brussels at +32-2-237-4331 or
ekrukowska@bloomberg.net
To contact the editors responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net;
