Issue CLXXXI

Carbon Newsletter

DBLM Solutions
23 Apr 2015

The EUA Dec14 contract is currently at 7.08.

Five business days to go to the compliance
deadline for 2014 emissions. Over the past six
years perceived extra demand at this time of year
was priced into the market. Be aware that
emissions are down roughly 4% year on year from
2013-14, creating 4% less demand. We are still in
the process of backloading 900 million EUAs,
roughly half way through to date and we are
awaiting finality on the MSR which is estimated to
be law by July. Remember, the backloading
process needed two passes through the European
Parliament before securing the Yes vote. With that
said, new European Parliament rules weighing
voting rights according to poulation rather than
Jurisdiction should weigh in favour of a hastier
positive result
Weekly
Recap

ICE
EUA
Spot

ICE CER
Spot

ICE
EUA
Dec15

ICE CER
Dec15

16/04/2014

6.87

0.58

6.90

0.51

17/04/2014

6.81

0.55

6.90

0.52

20/04/2014

7.05

0.52

7.17

0.52

21/04/2014

7.08

0.51

7.12

0.49

22/04/2014

7.11

0.51

7.13

0.49

Volumes lots

5,913

205

51,891

495

Week %

3.49%

-12.06%

7,227

-3.92%

The carbon price is still range bound, just coming

off the bottom, below 7.00 and may recorrelate
with Brent Crude as is its want from time to time.
The EUA/CER spread widened this week to 6.29,
at close of business last night versus the 6.29
spread we witnessed last week and 6.65 the week
before.

Auctions
EEX held auctions last Thursday, Friday, Monday
& Tuesday . Auction prices were 6.82, 6.83,
6.88 & 7.07 respectively. The cover ratios for the
above auctions were 2.1.88,2.10,2.18 & 2.52
respectively. (Cover ratio = no. of bids divided by
auctioned allowances. In addition, 1,493,500
EUAAs were auctioned at 6.75 with a cover ratio
of 2.33.

Impact Investment. GSF1`

GSI will create Strategic and Sustainable Responses to Challenges
facing the World.
- It will invest in established, proven, appropriate low tech
production methods.
- It will adapt, develop and institute critical new technology
solutions.
- It will create truly sustainable solutions to solve demands related
to regional development, food availability and global warming
- GSF1 provides Solutions to Global Warming, Food Demand and
Regional Development.
- Generates large volumes of sustainable biomass fuels - at efficient
prices will be critical in the fight against Global Warming.
- Ensures long term security of bio-organic, sustainable and healthy
food resources helps address global population growth.
- Ensures the pro-active social and economic development in a
deprived region in a more efficient way than by traditional AID
funding.

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 831747707
DBLM Solutions is partly funded by the Wicklow Enterprise Board.