Issue CXCI

Carbon Newsletter

DBLM Solutions
02 July 2015

The EUA Dec14 contract is currently at 7.45.

First resistence can be found at 7.50, followed at
7.55. Currently, the first support level is at 7.40.
Weekly
Recap

ICE
EUA
Spot

ICE CER
Spot

ICE
EUA
Dec15

ICE CER
Dec15

25/06/2015

7.54

0.40

7.61

0.39

26/06/2015

7.52

0.40

7.55

0.40

29/06/2015

7.36

0.41

7.37

0.38

30/06/2015

7.46

0.41

7.45

0.40

01/07/2015

7.48

0.44

7.50

0.43

Volumes lots

378

25

50,874

1,855

-7.95%

10%

-1.44%

10.25%

Week %

The EUA/CER spread narrowed this week to

7.04, at close of business last night versus the
7.05 spread we witnessed last week and 7.07 the
week before.

Auctions
EEX held auctions last Thursday, Friday, Monday
& Tuesday. Auction prices were 7.52, 7.50,
7.36 & 7.36 respectively. The cover ratios for the
above auctions were 1.61, 2.17, 3.93, & 2.99
respectively. (Cover ratio = no. of bids divided by
auctioned allowances. In addition 935,000 EUAAs
were auctioned for 7.11 each.

Transport
The transport sector accounts for one fifth of all
emissions from the EU. It is the only sector in the

EU where emissions are still rising. Light vehicles

(cars and vans) represents 15% of EU emissions.
EU legislation sets binding emission targets for
new car and van fleets. These targets were achieved
in 2013. Trucks, buses and coaches produce about
a quarter of CO2 emissions from road transport in
the EU and some 5% of the EUs total greenhouse
gas emissions a greater share than international
aviation or shipping. The European Commission
has therefore set out a strategy to curb CO2
emissions from these Heavy-Duty Vehicles
(HDVs) over the coming years. Despite some
improvements in fuel efficiency, CO2 emissions
from HDVs rose by some 36% between 1990 and
2010, mainly due to increasing road freight traffic.
Projections indicate that, without policy action,
total HDV emissions would still be close to current
levels in 2030 and 2050.
Despite the economic importance of fuel
consumption, CO2 emissions from HDVs are
currently neither measured nor reported. The
strategy therefore focuses on short-term action to
certify, report and monitor HDV emissions - an
essential first step towards curbing them.
The Commission has developed a computer
simulation tool, VECTO, to measure CO2
emissions from new vehicles. With the support of
this tool the Commission intends in 2015 to
propose legislation which would require CO2
emissions from new HDVs to be certified, reported
and monitored.

The contents of the Newsletter is not a recommendation, either implicit or explicit, to buy or sell emission permits.
Contact: David Boles, Compliance Markets -Direct: +3531 4433 584; Mob: +353 831747707
DBLM Solutions is partly funded by the Wicklow Enterprise Board.