Issue CCXXIII

Carbon Newsletter

DBLM Solutions
10 Dec 2015

The EUA Dec14 contract is currently at 8.32.

The carbon price is still moderately bearish after
making a couple of efforts during the week to gain
value. As a whole commodities have been severely
depressed over recent weeks with no sign of a
revival for oil prices as they dip below $40/barrel
for Brent Crude for the third time this year. Expect
any rise in oil prices to support the carbon contract.
Weekly
Recap

ICE
EUA
Spot

ICE CER
Spot

ICE
EUA
Dec15

ICE CER
Dec15

03/12/2015

8.44

0.60

8.57

0.60

04/12/2015

8.52

0.59

8.51

0.60

07/12/2015

8.45

0.59

8.42

0.59

08/12/2015

8.39

0.58

8.41

0.58

09/12/2015

8.43

0.57

8.40

0.56

Volumes lots

522

130,673

1,483

-0.11%

-5.0%

-1.98%

-6.66%

Week %

The EUA/CER spread narrowed this week at 7.86,

at close of business last night versus the 7.91
spread we witnessed last week and 7.99 the week
before.

Auctions
EEX held auctions last Thursday, Friday & Mon,
Tuesday & Wednesday. Auction prices were
8.44, 8.56, 8.42 & 8.33 respectively. The

cover ratios for the above auctions were 2.33, 2.80,

3.13 & 2.07 respectively. (Cover Ratio = Number
of bids/Auction Volume)

UN Climate Conference
The Climate Conference in Paris officially winds
up tomorrow. Before it concludes I will take a
quick look at any progress made. In the past the
annual conference, has had little effect on the live
carbon price but does play a major part on
sentiment towards the market. Keep in mind, that
the bureaucratic merry go round takes years to
enforce any decisions.
A major part of the conference is its ability to raise
further monies for Climate funding from Sovereign
states as well as large commercial entities. A
graphic to illustrate the plaedges can be found
Hope is increasing that the new Global climate
protocol will actively encourage carbon cap and
trade markets. The EU and Brazil yesterday put
forward a proposal about the role of "co-operative
approaches" or markets in the negotiating text.
It called for the creation of a "mechanism to
contribute to the mitigation of greenhouse gas
emissions and to support sustainable development
[in developing countries]", adding that such a
mechanism would be introduced on a voluntary
basis in different countries and would see promised
emission reductions "certified by operational
entities to be designated by the supervisory body".

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.