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Commerzbank Sees EU Carbon Price Rising to 20 Euros by End-2011
2010-12-02 16:26:55.569 GMT
By Ewa Krukowska
Dec. 2 (Bloomberg) -- European Union carbon allowances will
increase by more than a third to 20 euros a metric ton by the
end of next year amid demand from energy producers and airlines,
according to Commerzbank AG.
"The European power sector today lacks 120 million tons
worth of certificates," Commerzbank analysts said in a research
note published today. "Demand should rise sharply, given that
no free allotments will be made to this sector as of 2013."
Airlines, which will join the EU emissions trading system
as of 2012, will also experience a shortage of permits amid
forecast increases in air travel, Commerzbank said.
"If the emissions reduction target is raised from 20% to
30% of 1990 levels by 2020, as proposed by the EU Commission and
endorsed by the European Parliament, supply could rapidly dry up
on the market," the bank 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>
--Editors: John Buckley, Stephen Cunningham
To contact the reporter on this story:
Ewa Krukowska in Brussels at +32-474-620-243 or
ekrukowska@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
