Environmental Markets & Commodities

New record expected for carbon compliance

Oslo, 6 March 2012

The number of EU carbon credits (Certified Emissions Reductions and Emission Reduction Units) that will be handed in for 2011 compliance this year could be as high as 252 million, 84% more than were used for compliance last year, according to analysis by Thomson Reuters Point Carbon.

Read more: New record expected for carbon compliance

EU Parliamentary committee agrees set-aside measures

Brussels, 28 February 2012

A senior parliamentary committee of MEPs on Tuesday agreed controversial measures to let the EU Commission cut supply of carbon permits in the bloc’s Emissions Trading Scheme in a bid to prop up CO2 prices lingering below 10 euros. The industry committee of the EU Parliament passed an amendment to the Energy Efficiency Directive to allow the EC take measures by the end of the year that “may include withholding of the necessary amount of allowances” from the 2013-2020 phase of the EU carbon market.

Read more: EU Parliamentary committee agrees set-aside measures

Global carbon market to grow by 13% this year

Oslo, 22 February 2012

This year, the volume of carbon traded globally will continue to grow, by 13%, reaching 9.5 Gt CO2e, despite depressed prices, according to analysis by Thomson Reuters Point Carbon. Most of this year’s growth in volumes will come from the 7bn EU Allowances (EUAs) and 2.2bn Certified Emissions Reductions (CERs) that will change hands this year, up from 6bn and 2bn in 2011.

Read more: Global carbon market to grow by 13% this year

Bunge to acquire Climate Change Capital

London, 22 February 2012

Bunge Limited, a leading global agribusiness and food company, and Climate Change Capital Limited, a U.K.-regulated sustainable asset manager and advisor, today announced that Bunge has agreed to acquire Climate Change Capital Group Limited.

Read more: Bunge to acquire Climate Change Capital

IETA falls short of backing EU allowance set-aside

London, 15 February 2012

The International Emissions Trading Association (IETA) said Wednesday reforms should be made to the EU’s Emissions Trading Scheme, but fell short of joining the chorus of calls for a set-aside of allowances to prop up ailing carbon prices. The biggest carbon market lobby group warned that market participants are losing confidence in the commitment of EU policy makers to the bloc’s cap and trade scheme and said in a press release “the EU ETS is at risk of being side-lined as a policy instrument.”

Read more: IETA falls short of backing EU allowance set-aside

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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