Issue CXCVI

Carbon Newsletter

DBLM Solutions
06 July 2015

The EUA Dec14 contract is currently at 7.85.

The carbon price is struggling to stay ahead of the
8 mark as Brent Crude dips below the $50 mark.
That said, the recent price range is holding tight
under 8. Bullish Sentiment is continually created
on the approach to the Paris Global Climate Deal as
we get positive feeds from around the world, the
US being a case in point this week.
Weekly
Recap

ICE
EUA
Spot

ICE CER
Spot

ICE
EUA
Dec15

ICE CER
Dec15

30/07/2015

7.93

0.47

7.87

0.46

31/07/2015

7.84

0.48

7.87

0.47

03/08/2015

7.85

0.47

7.96

0.46

04/08/2015

7.89

0.47

7.93

0.46

05/08/2015

7.81

0.45

7.83

0.42

Volumes lots

1,864

108

40,367

153

-1.51%

-4.25%

-0.50%

-8.69%

Week %

The EUA/CER spread narrowed this week to

7.36, at close of business last night versus the
7.58 spread we witnessed last week and 7.43 the
week before.

respectively. (Cover ratio = no. of bids divided by

auctioned allowances.

US
President Obama announced his Clean Power plan
this week. The plan offers to reduce GHGs in the
United States by 32% by 2030 from 2005 levels.
The Rule has already raised a storm of opposition
and is likely to be met with heavy litigation. It is
believed that the rule is already pushed back by 2
years, with a start date penciled in for 2022.
The EPA set individual goals for each state to
reduce the carbon intensity of their power plants
based on a mix of four "building blocks":
improving efficiency of coal-fired power plants;
replacing more coal with natural gas; deploying
more wind, solar and hydro power and preserving
nuclear power; and expanding consumer energy
efficiency programs.
Each state must submit its plan by 2016-2018 and
start the emission cut by 2022. If a state refuses
to adopt a plan, the EPA have intimated that a
federal plan will be imposed which could involve
some sort of interstate cap and trade.

Auctions
EEX held auctions last Thursday, Friday, Monday,
Tuesday. Auction prices were 8.00, 7.82, 7.91,
& 7.94 respectively. The cover ratios for the
above auctions were 2.29, 1.71, 2.54 & 4.21

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.