Issue CCXXIII

Carbon Newsletter

DBLM Solutions
03 Dec 2015

The EUA Dec14 contract is currently at 8.47.

The short term chart looks decidely bearish. First
resistence can be found at 8.41, followed up at
8.32.
Weekly
Recap

ICE
EUA
Spot

ICE CER
Spot

ICE
EUA
Dec15

ICE CER
Dec15

26/11/2015

8.58

0.63

8.60

0.60

27/11/2015

8.54

0.60

8.56

0.59

30/11/2015

8.59

0.62

8.59

0.61

01/12/2015

8.57

0.60

8.56

0.60

02/12/2015

8.49

0.58

8.47

0.59

Volumes lots

4,561

255

66,455

1,090

-1.04%

-7.93%

-1.51%

-1.66%

Week %

The EUA/CER spread narrowed this week at 7.91,

at close of business last night versus the 7.99
spread we witnessed last week and 7.89 the week
before.

Auctions
EEX held auctions last Thursday, Friday & Mon,
Tuesday & Wednesday. Auction prices were
8.61, 8.54, 8.55 & 8.52 respectively. The
cover ratios for the above auctions were 3.28, 3.20,
2.51 & 3.19 respectively. (Cover Ratio = Number
of bids/Auction Volume)

UN Climate Conference
China will cut emissions of major pollutants in the
power sector by 60 percent by 2020, the cabinet
announced on Wednesday, after world leaders met
in Paris to address climate change. China will also
reduce annual carbon dioxide emissions from coalfired power generation by 180 million tonnes by
2020, according to a statement on the official
government website. It did not give comparison
figures but said the cuts would be made through
efficiency gains. (www.gov.cn) In Paris, Christiana
Figueres, head of the U.N. Climate Change
Secretariat, said she had not seen the
announcement, but linked it to expectations that
China's coal use would peak by the end of the
decade.
Beijing has pledged to reduce the share of coal in
total energy consumption to 60 percent by the end
of the decade. It has banned the use of low-grade
coals.
Also, local governments continue to approve new
capacity even as the country shuts outdated ones.
Around 200 GW of capacity was given the goahead in the first half of 2015, while only 4.9 GW
of small and ageing plants were shut in 2014.
An interesting publication has been published by
Carbon Trade watch which may show alittle insight
into the development of carbon markets after the
Paris negotiations. The report can be found here http://www.carbontradewatch.org/publications/path
s-beyond-paris.html.

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.