Issue CCXXVI

Carbon Newsletter

DBLM Solutions
07 Jan 2016

The EUA Dec14 contract is currently at 7.80.

The recent range, roughly from 8 to 8.80 in
recent months, was broken at the tail end of
yesterday's session. The main reason for this is
weaker German power prices and an ovarall
bearish energy complex, led by Brent, which hit
new long term lows of $32.16 this morning for
the front month contract.
Weekly
Recap

ICE EUA
Spot

ICE CER
Spot

ICE EUA
Dec16

ICE CER
Dec16

31/12/2015

8.22

0.51

8.29

0.50

01/01/2016

04/01/2016

8.04

0.49

8.10

0.47

05/01/2016

7.98

0.49

8.07

0.47

06/01/2015

7.76

0.47

7.80

0.45

Volumes lots

623

31,829

544

Week %

-5.59%

-7.84%

-5.91%

-10.0%

The EUA/CER spread narrowed this week at

7.29, at close of business last night versus the
7.56 spread we witnessed last week and 7.86
the week before.

ESD
The Effort Sharing Decision is the European
legislation that aims to tackle emissions outside
the Industrial and power sector, i.e transport,
agricultural, domestic and commercial sectors.

The ESD actually accounts for 55% of European

emissions.
In October 2014 EU heads of state agreed that by
2030 these non-ETS emissions should be 30%
lower than in 2005.
Europe will play its part through emission
standards for vehicles etc but each member
state will be responsible for carbon accounting
methodologies and will need to set up a carbon
budget and ways to mitigate emissions in these
sectors.
As you might imagine, this process could be
awash with loopholes and it important that the
EUETS and ESD be kept seperate.
A Europe that delivers a strong ESD will be a
continent with cleaner vehicles, less congestion,
super energy-efficient houses, more sustainable
farming, lower energy bills, and more jobs
through future-oriented industries. It is also a
major opportunity to save billions on oil and gas
imports and safeguard the old continents
security. This isnt just about climate policy but
also about smart economic policy, security,
innovation and quality of life improvement.
Finally, land use, land-use change and forestry
(LULUCF), the most intricate and complex issue
due to the difficulty of measuring GHG emissions
and absorptions from this sector. The EU agreed
that it needs to be integrated in the 2030
framework. Getting it right is one of the most
critical challenges for the Commission.

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.