Carbon trading at 30 Euros per tonne


2.2 per cent rise: European Union CO2 allowances for December 2006 rose 2.2 per cent to a record 30.05 euros a tonne on the European Climate Exchange in Amsterdam.

2007 permits and 2008 credits at record levels: Permits for 2007 rose to a record 30.70 euros, said the broker Spectron Group Plc. Credits for 2008 reached a record 30.40 euros.

Supply of permits restricted: The supply of permits was restricted because some European Union (EU) governments, including Poland and Greece, had yet to establish a system for tracking ownership of the allowances, limiting sales.

Prices up 54 per cent this year: Overall, the prices of CO2 permits had jumped as much as 54 per cent this year as drought in Spain and high natural gas costs forced utilities to burn more coal, increasing emissions.

Sellers not in market: “The sellers are not in the market," said Charlotte Streck, director of Climate Focus in Rotterdam. Climate Focus is an adviser on policies designed to curb greenhouse gases. Clients include Endesa SA, Spain’s largest power utility.

Estimated 400 million tonnes of CERs: There were about 400 million tonnes of CO2 equivalent in certified emission reductions (CERs) contracted in 2005, more than the 362 million tonnes of trade in EU allowances, according to a February report by Point Carbon, an Oslo-based research and publishing company.

Trading began in 2005: The EU began carbon-allowance trading last year. Each national government granted its factories and power plants permits for carbon dioxide. The companies must have an allowance for each tonne of the gas they emit. Those that emit more must pay a fine or buy an allowance from a company that emitted less and had extra allowances to sell.

Reference: Digest of latest news reported on website of Climate Change Secretariat of United Nations Framework on Climate Change Control (UNFCCC). 13 April 2006. Address: PO Box 260 124, D-53153 Bonn. Germany. Phone: : (49-228) 815-1005, Fax: (49-228) 815-1999. Email:

Erisk Net, 14/4/2006

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