Issue CXCVIII

Carbon Newsletter

DBLM Solutions
20 Aug 2015

The EUA Dec14 contract is currently at 8.34.

Has the carbon price settled into a new range above
8.00? If we look at the weekly and monthly charts
attached we can see that we are now gradually
trending upwards. Coal prices have fallen to 12
year lows which will support the carbon price as
economically viable coal will create a favourable
dark spread encouraging utilities to utilise coal for
power production. The Dark spark spread relates to
the difference between the market price of
electricity and its cost of production.
Weekly
Recap

ICE
EUA
Spot

ICE CER
Spot

ICE
EUA
Dec15

ICE CER
Dec15

13/08/2015

8.15

0.50

8.20

0.49

14/08/2015

8.22

0.50

8.33

0.48

17/08/2015

8.22

0.50

8.24

0.48

18/08/2015

8.26

0.52

8.28

0.49

19/08/2015

8.30

0.50

8.34

0.49

Volumes lots

2,948

38,900

755

Week %

1.84%

1.70%

The EUA/CER spread narrowed this week to

7.80, at close of business last night versus the
7.36 spread we witnessed last week and 7.58 the
week before.

Auctions
EEX held auctions last Thursday, Friday, Monday,
Tuesday. Auction prices were 7.83, 7.79, 7.78,

& 7.95 respectively. The cover ratios for the

above auctions were 4.14, 1.81, 3.84 & 3.52
respectively. (Cover ratio = no. of bids divided by
auctioned allowances.

Global Carbon pricing Vs

The graph below accounts for the global % of
GHGs covered by emission trading schemes and
carbon taxes around the globe to 2018.

The total value of the emissions trading schemes

(ETSs) reported in the State and Trends of Carbon
Pricing 2014 report was about US$30 billion
(US$32 billion to be precise). Despite the repeal of
Australias Carbon Pricing Mechanism in July
2014, and mainly due to the launch of the Korean
ETS and the expansion of GHG emissions
coverage in the California and Quebec ETSs, the
value of global ETSs as of April 1, 2015 increased
slightly to about US$34 billion.

The contents of the Newsletter is not a recommendation, either implicit or explicit, to buy or sell emission permits.
Contact: David Boles, Compliance Markets -Direct: +3531 4433 584; Mob: +353 831747707
DBLM Solutions is partly funded by the Wicklow Enterprise Board.