Issue CVVII

Carbon Newsletter

DBLM Solutions
20 Mar 2013 The EUA Dec13 contract is currently at 6.07. It is important to note that the auction demand was at thae highest level that I have witnessed during the week. The amount of bids was x12 times the EUAs available. After a week of bearish movement, prices started to rise at midday yesterday.
Weekly Recap Nasdaq EUA Spot 6.32 6.28 5.87 5.76 6.05 -4.27% Nasdaq CER Spot 0.16 0.18 0.16 0.16 0.12 -25% Nasdaq EUA Dec13 6.43 6.35 6.00 5.80 6.08 -5.44% Nasdaq CER Dec13 0.15 0.13 0.13 0.12 0.12 -20%

13/03/2014 14/03/2014 17/03/2014 18/03/2014 19/03/2014 Volumes lots Week %

EU Member States. The decision covers Austria, Croatia, Cyprus, Estonia, Germany, Greece, Ireland, Latvia, Lithuania, Luxemburg, Malta, Poland, Portugal, Romania, Slovakia, Spain and United Kingdom. The Central Administrator will now proceed to upload the tables into the Union registry. The outstanding tables are expected to be approved in two or three more batches. By early April all tables should be approved and uploaded. The exchange of international credits for allowances will be possible as soon as the ICE table for the relevant Member State is approved and uploaded in the Union registry. Once available, the exchange can take place at any time and is not limited to the annual compliance date.

Auctions
EEX held auctions last Thursday , Friday, Monday Tuesday & Wednesday auction prices were 6.71, 6.72, 6.93, & 6.81 respectively. The cover ratios for the above auctions were 6.99, 5.73, 12.10, & 9.36 respectively.

The EUA/CER spread widened this week to 5.93, at close of business last night versus the 6.31 spread we witnessed last week and 6.56 the week before. The Union registry will be down for a software upgrade tomorrow between 08:00 CET and 12:00 CET. After which, commercials will have access to the additional functionality of exchanging UN offsets for EUAs. Last Friday, The European Commission approved international credit entitlement (ICE) tables for 17

Aviation
On Wednesday, The European Parliaments Environment Committee rejected a deal to exempt long haul flights from the EUETS until the end of 2016. This comes ahead of a binding by the European Parliament, scheduled for April 3. However, many agree that the vote will get the nod at parliament level as time constraints remain a major issue.

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.