cers!EU Carbon Drops to Five-Month Low as Contract Expires;

better to swap euas for cheaper cers than roll forward? ...only if you have not reached cer limit i guess? why else cers so strong? discount economics? comments my way...cheers

Mathew Carr, emissions markets, energy reporter. London Bloomberg News ph +44 207 073 3531 yahoo ID carr_mathew


EU Carbon Drops to Five-Month Low as Contract Expires; CERs Rise
2010-12-20 10:15:24.229 GMT

By Ewa Krukowska and Mathew Carr
Dec. 20 (Bloomberg) -- European Union carbon allowances for
December fell to their lowest level in almost five months before
the contract expires today. Cheaper United Nations-overseen
Certified Emissions Reduction credits advanced.
EU permits lost as much as 0.9 percent to 13.85 euros
($18.23) a metric ton, the lowest level since July 29. They
traded at 13.90 euros as of 10:04 a.m. on London's ICE Futures
Europe exchange, extending this month's loss to 5.8 percent.
CERs for December rose 1.9 percent to 11.93 euros.
Factories and power stations in the EU program, the world's
largest greenhouse-gas market by trading volume, can use cheaper
CERs for compliance instead of allowances. Through December 2012
they can use credits from industrial-gas cutting projects
proposed for a ban by the European Commission, the market
regulator, after that month.
The discount of CERs for 2012 compared with EU allowances
for the same month, traded as a separate contract, shrunk 4.8
percent today to 3.56 euros a ton, the narrowest since Oct. 18.
The volume of December EU allowances traded was 985,000
tons so far today, compared with 8 million for the whole session
on Dec. 17. The volume of December 2011 futures traded was 1.1
million tons as the contract fell 0.6 percent to 14.19 euros.

For Related News and Information:
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European power-markets home page EPWR <GO>

--Editors: Rob Verdonck, Randall Hackley

To contact the reporter on this story:
Ewa Krukowska in Brussels at +32-474-620-243 or

To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net