Climex News Update

EU ETS carbon emissions fell 11% in 2009

Fri, 26 Feb 2010 14:10:32 +0100

Carbon dioxide emissions by companies regulated under the European Union's Emissions Trading Scheme fell by 11 percent last year in the wake of the economic downturn, analysts said on Thursday.
Emissions by heavy industry across the 27-nation bloc fell to 1.886 billion tonnes in 2009, 233 million lower than the previous year, Point Carbon estimated.
The drop means there was a surplus in allocated EU carbon permits of 77 million tonnes, Point Carbon added. It said emissions from utilities fell 88 million tonnes to 1.18 billion tonnes -- a 7 percent drop -- while those from industrial sectors like cement and steel tumbled by 17 percent or 145 million tonnes to 704 million tonnes.

EU CO2 Lacks Direction Amid 2010 Permit Issuance

Wed, 24 Feb 2010 00:52:07 +0100

European carbon emissions futures lacked clear direction on Tuesday as traders seek news on the speed and volume of newly issued carbon permits coming to market.
EU Allowances for December delivery inched up 2 cents or 0.16 percent to 12.80 euros ($17.50) a tonne at 1355 GMT, having reached an intra-day high of 12.92 euros in early trade. Volume was heavy at 4,578 lots traded. Spot EUAs on France's BlueNext exchange were up 5 cents at 12.66 euros a tonne. A German spot EUA auction cleared at 12.62 euros on Tuesday.
The Dec-10 benchmark contract gained over two percent on Monday, as investors bought into the market after Friday's 3.4 percent drop.
"The market is trading sideways. There's not much direction. We're all looking for signs of industrial selling," said an emissions trader (Source: Reuters).

Browner, Kerry stay upbeat on US cap and trade in 2010

Tue, 23 Feb 2010 23:50:10 +0100

President Obama remains committed to passing comprehensive energy and climate legislation in 2010 despite calls from Senate moderates to wait until after the midterm elections, a top White House aide said today.
"We want to do it this year," Carol Browner, the president's climate and energy adviser, told reporters following her appearance at a panel discussion hosted by The New Republic.
On Capitol Hill yesterday, several Senate Democrats -- including Finance Chairman Max Baucus of Montana, Commerce Chairman Jay Rockefeller of West Virginia and Carl Levin of Michigan -- questioned whether there is any momentum left for a sweeping bill that puts a price on carbon dioxide emissions. Levin said he expected that a pared-back energy bill had a better chance of passage. And Rockefeller said the White House would not mind more time, too, in order to better educate the public on the complex issue. But Browner denied Rockefeller's account of the legislative dynamics. And she explained that the climate debate has a better chance at picking up bipartisan Senate support in 2010 thanks to calls from many industries for greater regulatory certainty (Source: E&E News).

Prospects for CO2 trade post-Copenhagen: DOWN, BUT NOT OUT

Fri, 19 Feb 2010 11:21:36 +0100

The disappointing outcome of the Copenhagen climate change talks has led to questions about the future of the international carbon market. Failure to agree a post-Kyoto climate treaty has certainly dented confidence in the short term. But analysts and traders believe the carbon market is robust enough to survive even without such a treaty. A more fundamental question is whether carbon trading is an effective way of cutting greenhouse gas emissions. That debate is far from settled. See the new article on European Energy Review.

Chinese cap-and-trade programme sees first trades

Thu, 11 Feb 2010 09:24:27 +0100

US investment bank Citi and Gazprom Market & Trading (GM&T) have conducted the first trades in a municipal-based emissions trading programme in China. The two companies have bought so-called Carbon Emissions Allowances (CEAs) through the Tianjin Climate Exchange (TCX), said Dan Barry, deputy director of global carbon at GM&T.
We have both committed to up to a certain volume at a certain price, if the companies in the pilot phase exceed their target, he told Carbon Finance. Without disclosing the exact size of the trades, Barry said they are valued at less than $100,000.
The allowances are for a mandatory emissions intensity-based trading programme in Tianjin, targeting municipal heat suppliers: those that beat their target, measured in coal consumption, will be able to sell surplus CEAs at the end of the heating season in spring to those that have missed their target, subject to verification. The targets are based on the emissions-intensity goals in the government�s last five-year plan; the next plan is due in 2011.Barry explained effectively, it is cap and trade ... it is akin to the early stages of the EU Emissions Trading Scheme [ETS], just emissions intensity-based.

'Officials must be tougher on fraud'

Mon, 08 Feb 2010 14:52:03 +0100

Officials must be tougher on fraud, Barclays trading head says. Following last week's revelation that about 250,000 carbon dioxide allowances worth $4.4 million were improperly transferred after cyber attacks, fraud threatens to undermine the world's largest emissions market, the head of carbon trading at Barclays Capital said in an interview. Carbon trading volumes on Paris' BlueNext exchange fell to the lowest level since Dec. 28 on word of the cyber attacks.
"Without consistent and decisive action by the European Union, the world's flagship carbon market will become mired in fraudulent activity," said Louis Redshaw, managing director of Barclays PLC's investment bank unit (Source: E&E News)

China wants binding climate agreement in Mexico

Tue, 02 Feb 2010 10:52:55 +0100

China backs a climate change accord struck at a contentious summit late last year and wants a binding global agreement from talks culminating in Mexico later this year, Chinese Premier Wen Jiabao has said.
The Chinese leader endorsed the "Copenhagen Accord" in letters on January 29 to the United Nations Secretary-General Ban Ki-moon and Danish Lars Lokke Rasmussen, whose country hosted the rancorous summit that produced the controversial, last-minute document on fighting global warming, the official Chinese Xinhua news agency reported on Monday (Source: Reuters)

Climex Data available on Bloomberg

Thu, 28 Jan 2010 14:15:27 +0100

As of the start of the New Year Climex continuous trade data are available on Bloomberg. Subscribers to the BLOOMBERG PROFESSIONAL� service can see prices and volumes of EUAs, CERs and ERUs on the Climex Spot Platform.

Outcome Copenhagen; Summit or Downfall?

Thu, 28 Jan 2010 13:05:28 +0100

The long awaited United Nations Climate Change Conference did not lead to any binding agreements.

UnLevel VAT Playing Field

Thu, 28 Jan 2010 12:57:57 +0100

Still no univocal VAT policy regarding the EU ETS is incomprehensible and irresponsible.
2009 will by many active in the EU ETS be remembered as the year of the alleged carousel VAT fraud or missing trader fraud.

Climex organises Allocation Auction Workshops

Thu, 28 Jan 2010 11:27:38 +0100

Climex has always been organising workshops to support compliance companies in acquiring information and experience in the emerging carbon market.

Climex present at CMI Amsterdam as part of Hall of Holland

Thu, 28 Jan 2010 10:59:54 +0100

This year the annual Carbon Markets Insights conference organised by Point Carbon will take place in Amsterdam from 2 � 4 March. After 4 years in Copenhagen the conference is back at its starting location.

Wagenplan is seeking 26,000 VERs in �Reversed VER Auction�

Thu, 28 Jan 2010 10:57:06 +0100

For the second year Wagenplan, a Dutch car lease company, contracted Climex to purchase their VERs by auction.

Third Austrian EUA Auction 23 March 2010

Thu, 28 Jan 2010 10:25:50 +0100

On 23 March, the Austrian Government intends to hold its third EUA auction for 300,000 EUAs, within the EU ETS (Emissions Trading Scheme), on the Climex Platform.

Climex Energy Auction prepares Purchase Auction for Dutch Government

Thu, 28 Jan 2010 10:24:32 +0100

Climex Energy Auction has started to prepare for the European Tender procedure regarding the purchase of the Dutch Government�s total energy consumption.