Issue CXXXVII

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:00353 831744707
DBLM Solutions is partly funded by the Wicklow Enterprise Board.
Carbon Newsletter
DBLM Solutions
23 Oct 2014


The EUA Dec14 contract is currently at 6.23.
The Dec14 EUA contracts look decidely bullish at
the moment, consolidating the high we witnessed
Wednesday last week. During the week, several
soundbites from trhe German Executive supported
EUA prices. Note that under the right conditions
and at he right time these utterances can cause wild
swings in the market.
Weekly
Recap
ICE
EUA
Spot
ICE CER
Spot
ICE
EUA
Dec14
ICE CER
Dec14
16/10/2014 6.20 0.07 6.21 0.08
17/10/2014 6.13 0.07 6.13 0.07
20/10/2014 6.09 0.07 6.14 0.07
21/10/2014 6.20 0.07 6.18 0.07
22/10/2014 6.22 0.07 6.23 0.07
Volumes lots 3,549 0 61,545 1,159
Week %

0.32% - 0.32 -12.5%
The EUA/CER spread widened this week to 6.16,
at close of business last night versus the 6.04
spread we witnessed last week and 5.92 the week
before.
Auctions
EEX held auctions last Thursday, Friday, Monday,
& Tuesday. Auction prices were 6.16, 6.23,
6.03 & 6.13 respectively. The cover ratios for the
above auctions were 4.51, 3.47,


3.58 & 5.89 respectively. (Cover ratio = no. Of
bids/tonne divided by auctioned allowances)
EUClimate and Energy policy
This morning the EU meet to develop policy
around emission targets and energy policy out to
2030. Poland and Portugal are devils advocate and
are predicted to attempt to impede the process. The
pan European proposed supergrid also seems to be
causing a bottleneck. European Climate
Commissioner Connie Hedegaard told Reuters in
an interview. ..."It should be feasible to agree on a
40 percent domestic greenhouse gas target and a
very strong signal on efficiency and renewables
The three 2030 targets are: They are to cut
greenhouse gas emissions by 40 percent versus
1990, increase green fuel to 27 percent of energy
used and improve energy efficiency, through
measures such as better insulation, to 30 percent
compared with business as usual. The
overwhelming sentiment in the build up to these
talks that the cost would be greater through
inaction on the three targets mentioned above. This
is only the start of the process and the debating,
lobbying process took just shy of 3 years for the
2020 targets.
As always, the bottom line dictates rationale and
some fear that current economic fragility may
dilute laws that ultimately save much more and put
some distance between themselves and Russian
energy dependency.