Issue CCI

Carbon Newsletter

DBLM Solutions
10 Aug 2015

The EUA Dec14 contract is currently at 8.32.

The carbon price is bullish the last 2 days as our
new range above 8 holds firm despite several
attempts to break below.
Weekly
Recap

ICE
EUA
Spot

ICE CER
Spot

ICE
EUA
Dec15

ICE CER
Dec15

03/09/2015

8.15

0.52

8.19

0.52

04/09/2015

8.08

0.52

8.09

0.52

07/08/2015

8.07

0.51

8.10

0.50

08/09/2015

8.20

0.53

8.24

0.51

09/09/2015

8.27

0.52

8.28

0.51

Volumes lots

2,053

15

48,151

245

Week %

1.47%

1.09%

-1.93%

The EUA/CER spread widened this week to 7.75,

at close of business last night versus the 7.58
spread we witnessed last week and 7.57 the week
before.

Auctions
EEX held auctions last Thursday, Friday & Mon.
Auction prices were 8.06, 8.02, 8.09 & 7.94
respectively. The cover ratios for the above
auctions were 2.23, 2.85, 2.82 & 5.01 respectively.
respectively. (Cover ratio = no. of bids divided by
auctioned allowances.

Loss and Damage

UN climate talks in Paris are now less than 100
days away. As every year, the key issue is
compensation for developing Nations.
Poorer countries want compensation for extreme
weather events that they link to large scale carbon
emissions. The US and EU have avoided this idea
due to the cost which could run into billions.
However, a clarified proposal from the US, made
last Friday, is being seen as a "step forward" by
some delegates.
Loss and damage has increasingly become a
totemic issue for developing nations, who point to
events like Typhoon Haiyan as an example of the
tremendous damage that extreme weather events
can wreak on the most vulnerable.
They argue that the world is seeing a greater
frequency of these events and they are caused, in
the main, by emissions of carbon dioxide that are
mainly the responsibility of the rich.
The question almost derailed the UN process in
Poland in 2013. The parties eventually agreed to set
up the so-called Warsaw Mechanism, which was
given two years to develop a plan of how the issue
should be tackled.
Poorer Nations point to reports from insurers which
say that losses linked to weather events have risen
from around $50bn a year in the 1980s to around
$200bn now.
The US proposal suggests that the Warsaw
mechanism be extended and made permanent.

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.