Climex News Update

Carbon dioxide emissions by companies regulated under the European Union's Emissions Trading Scheme fell by 11 percent last year in the wake of the economic downturn, analysts said on Thursday.
Emissions by heavy industry across the 27-nation bloc fell to 1.886 billion tonnes in 2009, 233 million lower than the previous year, Point Carbon estimated.
The drop means there was a surplus in allocated EU carbon permits of 77 million tonnes, Point Carbon added. It said emissions from utilities fell 88 million tonnes to 1.18 billion tonnes -- a 7 percent drop -- while those from industrial sectors like cement and steel tumbled by 17 percent or 145 million tonnes to 704 million tonnes.

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Wednesday, February 24 - 00:52

EU CO2 Lacks Direction Amid 2010 Permit Issuance

Posted by Jos Cozijnsen in Trading

European carbon emissions futures lacked clear direction on Tuesday as traders seek news on the speed and volume of newly issued carbon permits coming to market.
EU Allowances for December delivery inched up 2 cents or 0.16 percent to 12.80 euros ($17.50) a tonne at 1355 GMT, having reached an intra-day high of 12.92 euros in early trade. Volume was heavy at 4,578 lots traded. Spot EUAs on France's BlueNext exchange were up 5 cents at 12.66 euros a tonne. A German spot EUA auction cleared at 12.62 euros on Tuesday.
The Dec-10 benchmark contract gained over two percent on Monday, as investors bought into the market after Friday's 3.4 percent drop.
"The market is trading sideways. There's not much direction. We're all looking for signs of industrial selling," said an emissions trader (Source: Reuters).

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Tuesday, February 23 - 23:50

Browner, Kerry stay upbeat on US cap and trade in 2010

Posted by Jos Cozijnsen in Trading

President Obama remains committed to passing comprehensive energy and climate legislation in 2010 despite calls from Senate moderates to wait until after the midterm elections, a top White House aide said today.
"We want to do it this year," Carol Browner, the president's climate and energy adviser, told reporters following her appearance at a panel discussion hosted by The New Republic.
On Capitol Hill yesterday, several Senate Democrats -- including Finance Chairman Max Baucus of Montana, Commerce Chairman Jay Rockefeller of West Virginia and Carl Levin of Michigan -- questioned whether there is any momentum left for a sweeping bill that puts a price on carbon dioxide emissions. Levin said he expected that a pared-back energy bill had a better chance of passage. And Rockefeller said the White House would not mind more time, too, in order to better educate the public on the complex issue. But Browner denied Rockefeller's account of the legislative dynamics. And she explained that the climate debate has a better chance at picking up bipartisan Senate support in 2010 thanks to calls from many industries for greater regulatory certainty (Source: E&E News).

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Friday, February 19 - 11:21

Prospects for CO2 trade post-Copenhagen: DOWN, BUT NOT OUT

Posted by Jos Cozijnsen in Trading

The disappointing outcome of the Copenhagen climate change talks has led to questions about the future of the international carbon market. Failure to agree a post-Kyoto climate treaty has certainly dented confidence in the short term. But analysts and traders believe the carbon market is robust enough to survive even without such a treaty. A more fundamental question is whether carbon trading is an effective way of cutting greenhouse gas emissions. That debate is far from settled. See the new article on European Energy Review.

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