Environmental Markets & Commodities

GreenX introduces spread trading for California allowance

London, 23 January 2012

Effective Sunday, February 12, 2012 for trade date Monday, February 13, 2012, GreenX will introduce calendar spread functionality for trading in California Carbon Allowance Futures.  Spread functionality will be available on CME Globex® and through CME ClearPort.

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EU draft reveals vast CO2 market surplus

London, 22 January 2012: Thomson Reuters Point Carbon

The world’s biggest carbon market could have up to four times as many excess permits by 2020 than some analysts currently estimate, according to an EU draft document, raising the prospect of further price write-downs. A European Commission draft working paper, seen by Point Carbon News, says the EU Emissions Trading Scheme (ETS) will have 2.4 billion surplus emission permits over 2008-2020 because of lower CO2 output as a result of the economic and financial crisis.

Read more: EU draft reveals vast CO2 market surplus

Carbon traded in 2011 grew 19%, bucking downturn

Oslo, January 2012: Point Carbon

Carbon price within EU crashes but rises in California: Global carbon markets last year continued to buck the global economic downturn with traded volumes up 19% on 2010, in a year of price volatility, according to analysis published today by Thomson Reuters Point Carbon.

Read more: Carbon traded in 2011 grew 19%, bucking downturn

EU ETS: too much, too young ...

London, 10 January 2012

EUA prices in 2012 now forecast to average 7.5 €/t and CERs to average 4 €/t: In a moment of Christmas benevolence, Barclays Capital welcomed the news that the Environmental Committee of the EU Parliament passed a number of resolutions that would facilitate the EC holding back a significant volume of phase 3 EUAs from the first few years of the phase. After some deeper reflection, they are now more circumspect on this as the entire concept of the set-aside raises uncomfortable issues about political interference in the EU ETS.

Read more: EU ETS: too much, too young ...

Carbon prices in turmoil ....

London, 6 January 2012

CERs hit record lows, EUAs fall 2%: CER buyers seek contract rejigs, exits as prices collapse: -  Prices of U.N. carbon offsets plunged to a record low on Friday, tumbling around 6.5% from the previous close as traders sold CERs amid thin liquidity and hefty issuances.

At the same time, carbon offset buyers are seeking ways to renegotiate purchase agreements or even nullify them after market prices crashed far below their wholesale credit costs, several sources told Point Carbon News.

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Commodities Now

Argentine biodiesel exports soar to $1.9 bn

Buenos Aires, 28 december 2011

Argentine biodiesel exports rose more than 58 percent to $1.9 billion in 2011 compared with the year before, the country's main biodiesel industry group has announced. In volume terms, biodiesel exports from the South American country shot 18.5 percent higher to 1.6 million tonnes, according to a statement from the Argentine Biofuels Chamber, or CARBIO, as it is known by its Spanish initials.

Read more: Argentine biodiesel exports soar to $1.9 bn

EU ETS - good news for a change

London, 20 December 2011

The EU ETS finally received some good news in response to the vote by the European Parliament's environmental committee to approve a draft of the new energy efficiency directive, according to Trevor Sikorski of Barclays Capital. While addressing energy efficiency is a right in its own, it is expected to reduce emissions in both the traded and non-trade sectors.

Read more: EU ETS - good news for a change

Business leaders call on EU to save ETS

London, 15 December 2011:

Some of Europe’s biggest companies on Thursday called on European Commission President Jose Manuel Barroso to support intervention in the EU’s carbon market, where prices have crashed to record lows. Some of Europe’s biggest companies on Thursday called upon European Commission President Jose Manuel Barroso to support intervention in the EU’s carbon market, where prices have crashed to record lows.

Read more: Business leaders call on EU to save ETS

EU carbon plunges to record low of 6.58 euros

London, 14 December 2011: Thomson Reuters Point Carbon

EU carbon prices fell to their lowest ever level on Wednesday, dropping to 6.58 euros as the euro currency and equities slid on U.S. fears that last week’s EU summit had failed to rein in the euro zone’s debt crisis. By 1000 GMT, the ICE ECX December 2011 EUA contract was trading at an all-time low after falling 6.4 percent compared to Tuesday’s 7.03-euro settlement.

Read more: EU carbon plunges to record low of 6.58 euros

CERs crash 8.8 percent, hit record low

London, 13 December 2011: Thomson Reuters Point Crbon

UN-backed carbon offsets plunged to an all-time low Tuesday on the back of continued fears of over-supply in the market, albeit in thin trade. By 11:00 GMT, the December 2011 CER contract on ICE Futures Europe was trading at 4.47 euros, a record low for the contract and down 43 cents on Monday’s 4.90-euro close.

Read more: CERs crash 8.8 percent, hit record low