DBLM Solutions

David Boles 01 4433584 (Direct) dblmdavid (SKYPE) david@dblmsolutions.com

DBLM Solutions Carbon Update

Carbon Overview

David Boles 01 4433584 (Direct) dblmdavid (SKYPE) david@dblmsolutions.com

At time of writing the Dec '13 EUA Contract was at 4.44. Recent permit gains corrected downwards as traders warn that the resumption of Auction volumes to almost double that seen in August will drive prices down again. The Union registry will be closed for maintenance from 08.00 CET tomorrow, 27/08/2013 to 08:00 on 29/08/2013. The flexible mechanisms within the EUETS (Clean Development Mechanism & Joint Implementation) have received another blow with news from the Swiss. They have passed anew law which dictates that fuel impoters must source their offsets from domestic projects. Their annual offset purchase is likely to fall by as much as 76%. The domestic offsets will cost as much as 81. This may have a downward effect on CER prices but has not registered yet as CER's remain at previous levels. Dec'13 CER'S are currently trading at 0.62 cents. Dec'13 ERU's are also stable at 0.42. France announced on Friday that they are to introduce a green levy in order to promote energy efficiency. This comes 4 years after x president Sarkozy failed to introduce a carbon tax. The tax will partly replace existing taxes and the government tried to reassure that their will be no perceivable impact on end users. The timing may not be the greatest as many French received income tax bills this weeks and citizens already carry one of the highest tax burdens in the developed world.
Dec 13 EUA

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