Carbon Market Analysis
- September 17 2012
The price of the benchmark EUA Dec12 contract showed some recovery during August. There appear to be at least three factors for this: #1. Market participants hope for the European Commission to reach an agreement about the back-loading of allowances from the Phase 3 auctions that would decrease the supply in 2013-2015, #2. Statements from EU leaders suggesting that they would do anything to rescue the Eurozone, #3. Linking the emissions trading schemes of the EU and Australia.
- June 18 2012
Carbon market prices have become more characterised by macroeconomic development rather than the basics of supply and demand.
- May 15 2012
After the compliance period ended on 30 April 2012, the benchmark EUA Dec12 fell sharply until EUR 6.50, and stopped at this level rather than plummeting further on generally negative economic sentiment in the Eurozone.
- April 13 2012
The downward trend in carbon prices continued with the EUA spot market dropping from a March high of 8.64 Euros to a low of 6.93, a drop of nearly 20%. There was a slight rally at the end of the month with hopes that 2011 verified emissions data might indicate a slight increase in emissions hence demand for carbon permits. The EUA Dec12 contracts finished the month at EUR 7.12, a similar drop to EU spots. The UN–issued CER spots fared slightly better and dropped 15% to reach EUR 3.79 with compliance buying for April 2012 submissions helping cushion the price somewhat.