Issue CCV

Carbon Newsletter

DBLM Solutions
08 Oct 2015

Oil
The EUA Dec14 contract is currently at 8.13.
Just before close the carbon price bounced off first
resistence at 8.09. Current charts look bearish,
looking to the above resistence to push down
further.
Weekly
Recap

ICE
EUA
Spot

ICE CER
Spot

ICE
EUA
Dec15

ICE CER
Dec15

01/10/2015

8.15

0.54

8.17

0.53

02/10/2015

8.12

0.56

8.15

0.56

05/10/2015

8.19

0.63

8.20

0.64

06/10/2015

8.19

0.63

8.21

0.62

07/10/2015

The leaders of the top 8 global companies will meet

on October 16 in Paris ahead of the global Climate
summit in Paris. They are expected to call for more
concrete developments for a global carbon price.
We need to be on the offensive... We need to be
serious to bring answers and solutions to the table
and not leave policy makers raising their fingers
that they(oil companies) are the devils. Pouyanne
(head of Total) said.
In addition, Glencore have called on policy makers
to acknowledge coal as an important part of our
energy mix moving forward. It looks like that fossil
fueled based companies are looking to position
themselves ahead of any possible policy
developments that may impact their operations.

Dynamic ambition mechanism

Volumes lots
Week %

The EUA/CER spread widened this week to 7.64,

at close of business last night versus the 7.54
spread we witnessed last week and 7.71 the week
before.

Auctions
EEX held auctions last Thursday, Friday & Mon,
Tuesday & Wednesday. Auction prices were
8.15, 8.08, 8.16, 8.12 & 7.89 respectively.
The cover ratios for the above auctions were 2.93,
2.85, 2.91, 3.62 & 4.69 respectively. (Cover Ratio
= Number of bids/Auction Volume)

It is likely that the declared emissions reductions

targets in Paris will not by themselves be enough to
meet the long-term goal. Moreover, they only cover
a five or 10-year period starting in 2020. It is
therefore essential that countries should come
together regularly every five years to consider and
strengthen emission targets in light of the latest
science and progress made to date. All parties
should be required to either submit new or updated
commitments, without falling behind previous
levels of commitment, or resubmit the existing
ones. The EU has been a strong advocate for an
ambition mechanism and considers it one of the
key features of the Paris Agreement.

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.