Issue CXCV

Carbon Newsletter

DBLM Solutions
30 July 2015

The EUA Dec14 contract is currently at 8.01.

Weather forecasts look bearish for carbon prices
with projected wind temporarily picking up.
Weekly
Recap

ICE
EUA
Spot

ICE CER
Spot

ICE
EUA
Dec15

ICE CER
Dec15

23/07/2015

8.06

0.47

8.09

0.45

24/07/2015

7.99

0.45

8.02

0.44

27/07/2015

8.00

0.45

8.02

0.46

28/07/2015

8.00

0.47

8.02

0.47

29/07/2015

8.06

0.48

8.07

0.47

Volumes lots

10,203

458

60,665

2,515

2.12%

-2.47%

4.44%

Week %

The EUA/CER spread widened this week to 7.58,

at close of business last night versus the 7.43
spread we witnessed last week and 7.33 the week
before.

Auctions
EEX held auctions last Thursday, Friday, Monday,
Tuesdayand this morning. Auction prices were
8.04, 8.01, 7.95, 8.03 & 8.00 respectively.
The cover ratios for the above auctions were 2.65,
2.14, 3.72, 3.62 & 2.29 respectively. (Cover ratio =
no. of bids divided by auctioned allowances.

France
Last week, French Lawmakers adopted an energy
law, targeted at reducing Frances reliance on
Nuclear Energy and rising carbon prices fourfold.

The target price for carbon to 56/tonne by 2020

and 100 by 2030. The current rate stands at
14.50/tonne integrated in a levy on fossil fuels.
This is scheduled to rise to 22/tonne for 2016. The
law aims to reduce Frances Nuclear portion of
their energy mix from 75% to 50% by 2025.

EU and China
Yesterday, the EU and China agreed to intensify
their bilateral climate cooperation for example in
the areas of domestic mitigation policies, carbon
markets, low-carbon cities, greenhouse gas
emissions from the aviation and maritime
industries, and hydrofluorocarbons (HFC). The ongoing cooperation on emissions trading will be
expanded, in view of China's plans to establish a
nationwide emissions trading system by 2020.

World Bank
The world bank has taken the first steps in order to
reinvigorate the UN offset market. On July 15, it
auctioned rights, but not obligation, to sell CERs
from methane emission reducing projects, at a
guaranteed floor price. Twelve companies won the
put options for a strike price of $2.40 per credit.
The World Bank has termed the exercise a
success. If the market prices of carbon credits go
up beyond $2.40, the companies that bid and won
the options are free to sell them in the market. If the
prices remain low (as they are now), then they can
sell the credits at the World Banks Pilot Auction
Facility for methane and climate change
mitigation, at the floor price.

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.