Issue CXXI

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Carbon Newsletter
DBLM Solutions
03 July 2014


The EUA Dec13 contract is currently at 6.06.
The first of July saw the 6 euro mark broken for the
first time since the end of March. The bullish move
is attributed to the increased demand from utilities
while auction volume will reduce in the short to
mid term. However, during the week Moodys
published a report on wholesale power prices,
forecasting that they will remain at current low
levels until at least 2020. The forecast is attributed
to an increase in renewable output and lower
demand. This should contribute to limiting gains
but be warned that the last quarter pof 2014
witnessed gains larger than any quarter since 2008
Weekly
Recap
ICE
EUA
Spot
ICE CER
Spot
ICE
EUA
Dec13
ICE CER
Dec13
26/06/2014 6.04 0.15 6.11 0.15
27/06/2014 5.74 0.14 5.82 0.14
30/06/2014 5.81 0.16 5.86 0.16
01/07/2014 5.99 0.17 6.05 0.17
02/07/2014 6.04 0.17 6.11 0.17
Volumes lots 5,734 0 68,763 1,527
Week %

- 13.33% - 13.33%

The EUA/CER widened this week to 5.87, at
close of business last night versus the 5.56
spread we witnessed last week and 5.61 the week
before.


The Union Registry will be closed on 9 July due to
software updates.
Auctions
EEX held auctions last Thursday, Friday, Monday
& Tuesday Auction prices were 5.77, 5.70,
5.82,5.80 & 5.97 respectively. The cover ratios
for the above auctions were 5.63, 5.78, 3.76 & 5.22
respectively.
UN Offsets
In July 7 new CDM projects were submitted. These
projects were hosted by 3 from India, 2 from
Bhutan,1 from Sri Lank, and 1 from Uganda. In
addition 2 projects from Panama were resubmitted.
July had a monthly issuance of 8.9 MCERs. The
total issuance is now 1466 MCERs.
According to the "Annual compilation and
accounting report for Annex B Parties under the
Kyoto Protocol for 2013" FCCC/KP/CMP/2013/6
the total Voluntary Cancellation until the end of
2012 was 4.9 MCERS, and it could easily be the
double now. Since the Voluntary Cancelations in
the central registry is now 0.776 MCERs, the
Voluntary cancelation in the national registries
must be around 10 MCERs.