Issue XCVVIV

Carbon Newsletter

DBLM Solutions
27 November 2013 The EUA Dec13 contract is currently at !4.67. This week, volatility in the carbon price was the result of Government auctions. On Monday, The price dropped due to the pressure of two government auctions which released close to 7 million auctions into the market. Yesterday saw a 2% rise in prices, again blamed on the fortnightly break in auctions today.(UK ICE auctions on;y occur every two weeks)
Weekly Recap 20/11/2013 21/11/2013 22/11/2013 25/11/2013 26/11/2013 Volumes lots Week % Nasdaq Nasdaq EUA Spot CER Spot 4.51 4.42 4.42 4.39 4.49 -0.44% 0.35 0.35 0.32 0.35 0.33 -5.71% Nasdaq Nasdaq CER EUA Dec13 Dec13 4.50 4.40 4.42 4.40 4.45 -1.11% 0.35 0.32 0.33 0.34 0.33 -5.71%

3.94,3.58 & 4.67 respectively (Cover ratio Amount of bids/actual auction volume In total an extra 18,065,500 EUAs were brought to the market place.

Climate Talks
The Climate talks came to a close after 30 hours of tortuos debate lasr Staurday, culminating in a compromise on how to fight global warming. A pathway to a new global climate treaty for Paris in 2015 was agreed. The sticking points came down to single words in the draft text. Some parties invol;ved were unhappy due to the lack of clarity on any future financing for developing countries for loss and damage . Developing Nations sought a separate loss and damage mechanism, to compensate for extreme weather events, but agreement only went as far as establishing such a mechanism under the umbrella if the existing adaption mechanism. Japan also declared that they would be unable to meet 2020 targets. Developed countries are insisting that the proposed targets apply to everyone, but developing nations are keen to maintain the status quo set out in the Kyoto agreement. The backloading of 900 million EUAs has taken a step closer to fruition as the EU Climate Change Committee in order to facilitate work at the next Committee meeting on 11 December, the Commission last Thursday submitted to the Committee a non-paper outlining several options for the time profile of back-loaded volumes.

The EUA/CER spread widened this week to !4.16 at close of business last night versus the !4.09 spread we witnessed the week before and !4.13 the previous week.

Auctions
EEX held auctions last Thursday, Friday, Monday x 2 and Tuesday,auction prices were !4.44, !4.48, !4.38, !4.38 and !4.41 respectively. The cover ratios for the above auctions were 4.10, 4.28,

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:00353 831744707 DBLM Solutions is partly funded by the Wicklow Enterprise Board.