yest/UN Emissions Decline the Most in Two Months as Supply

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


UN Emissions Decline the Most in Two Months as Supply Rises
2011-01-10 17:42:41.372 GMT

By Mathew Carr
Jan. 10 (Bloomberg) -- United Nations emissions permit
prices declined the most in almost two months as supplies of new
credits advanced.
UN Certified Emission Reductions for December fell 2.9
percent to 10.90 euros ($14.11) a metric ton on the ICE Futures
Europe exchange in London. They dropped 4 percent on Nov. 16.
European Union carbon allowances for December lost 2.7 percent
to 14.23 euros a ton.
Barclays Plc cut its forecast for UN carbon prices in the
first half of 2011, citing a higher-than-expected supply of new
credits. UN prices will average 13 euros a ton in the six
months, less than a previous forecast for 14.50 euros, Trevor
Sikorski, a London-based analyst at Barclays Capital, said today
in an e-mailed report.
The supply of UN credits rose 8.2 percent last year to 132
million tons, Sikorski said. China had 69 percent, higher than
its 60 percent in 2009, he said. Power stations and factories in
the EU, the world's largest carbon market, can use UN credits
for compliance.
EU regulators are considering restrictions on UN emission
credits linked to industrial gases.
The European Commission, regulator for the 27-nation bloc,
proposed Nov. 25 to exclude UN-sponsored credits related to
industrial gases including hydrofluorocarbons and nitrous oxide
starting in 2013. The commission said the credits may create
windfall profits for investors and undermine the EU market.

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--Editors: Rob Verdonck, Randall Hackley

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 on +44-20-7073-3520 or sev@bloomberg.net