Fwd: Retroactive Changes on EU Carbon ‘Troubling,’ Deutsche Bank Says

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Retroactive Changes on EU Carbon 'Troubling,' Deutsche Bank Says
2010-12-06 15:04:49.48 GMT

By Mathew Carr
Dec. 6 (Bloomberg) -- Retroactive changes proposed to the
rules of the European Union emissions trading system will punish
the investors who were first in the market, said a Deutsche Bank
AG official.
"Retroactive or retrospective changes to policy are very
troubling because they can end up penalizing investors who
deployed capital in good faith and were first movers," said
Caio Koch-Weser, vice president at the bank and member of the
United Nations advisory group on climate finance.
Spain's discussion of retrospective cuts to feed-in tariffs
was not very helpful earlier in the year,'' Koch-Weser said
yesterday in Cancun, Mexico, at the Green Solutions conference.
"Thankfully that has now been resolved." The bank finds the
proposed ban by the European Commission on some Certified
Emission Reduction credits "equally troubling. Such
retroactivity should be avoided."
The commission has proposed to ban some offsets from Jan.
1, 2013, four months before the end of the period for which
factories and power stations can hand in allowances and credits
for the second phase of EU carbon market, the world's largest.

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: Alex Devine, Jonas Bergman.

To contact the reporter on this story:
Mathew Carr in London at +44-20-7073-3531 or

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