The Carbon Market 29.01.2015
The ICE exchange from London opened up its operations:
- EUA spot opened at € 7.00
- EUA Dec 15 futures opened at € 7.06
- CER futures contract Dec 15 opened at € 0.43
- Brent Crude Front Month trade at $ 48.69
- German Power Front Month trade at € 35.50
The European Carbon Market EU ETS
Last week, EUA price fell by about 60 cents in one day, due to lack of opinion of the ITRE Committee from the European Parliament related to the MSR (Market Stability Reserve).
Although opinions differ, we believe that the ambiguous result from the ITRE Committee can be positively interpreted because the decision on MSR will remain to the ENVI Committee of the EP, through the vote scheduled on 24th February. At this time, ENVI members of the Parliament support an early implementation of the MSR, in 2017.
Please note that the MSR refers to the withdrawal from the market of 900 million EUAs to remain in this reserve. Basically, the allowances that come on the market in 2017 as a result of the “back-loading” process, will go directly into this reserve, without affecting the increasing of the supply of CO2 certificates on the EU ETS market.
