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Recent news surrounding the EU ETS -Issued Tuesday June 26th 2012 EU Carbon Climbs as Natural Gas, German Power Increases Bloomberg. European Union carbon permits advanced toward a three-month high as German power prices and U.K. natural gas rose. Allowances jumped yesterday to their highest in more than three months as regulators in Brussels considered temporarily withholding supply sold in auctions in the three years starting next year. Carbon has risen 28 % so far this month. EU carbon up 1% as EC reaffirms CO2 support plan Reuters. European carbon firmed 1% on Tuesday as sustained utility buying dragged up carbon prices across the curve and outweighed wider concerns about the future of the euro zone. BUY OR SELL-Is carbon price slump over? Reuters. Matthew Gray, an analyst for Jefferies Bache, said risk is favouring the upside due to the imminence of carbon market intervention by the EU. "So now is a good time to buy." Deutsche Bank analysts estimate that delaying the auctioning of 600 million EU carbon permits over the period 2013 - 2016 could lift carbon prices back into the 15-20 euro range next year. EU carbon prices to treble with 1.2 bln set-aside Reuters. European carbon prices could more than treble to 24 Euros within three years if regulators decide to temporarily cut supply of allowances in the blocs Emissions Trading Scheme, according to an analyst poll taken by Reuters Point Carbon. EU ETS Q1 emissions likely to rise as coal use soars Reuters. EU emissions are poised to rise in 2012 as big emitting countries opt to burn coal over cleaner gas to produce electricity, defying stuttering economic growth and a slight dip in Q1 thermal power output.

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Chubu emissions rise 8% as nuclear shutdown bites Reuters. The emissions of Japans third-largest power company rose 8% in the 12 months ending May 2012, as fossil-fuel generation replaced output from its sole nuclear plant, meaning the generator may have to rely on more U.N. carbon credits to hit CO2 targets. EU carbon surges 7.4 pct on utility buying, short covering Reuters. European carbon hit a three-month high Friday to post its biggest weekly gain in four months, as utilities bought on growing confidence that the EU would cut permit supply, forcing banks to reverse positions and buy back allowances. African nation signs 1-bln euro forest carbon deal Reuters. The government of the Central African Republic has signed a contract with Israeli investors that could produce up to 12 million carbon offsets a year by avoiding deforestation, one of the biggest deals yet in an opaque market deemed to have a high level of political risk. German coal demand is up nearly 5% in Q1 Reuters. Demand for coal in Germany rose almost 5% in the first three months of the year as coal-fired power stations replacing nuclear plants that had been mothballed, suggesting Europes biggest emitter will have increased its CO2 emissions over the period. U.K Require Public Companies to Report CO2 Emissions Bloomberg. The U.K. will make publicly listed companies report their greenhouse-gas output, the first country to do so as it calls on big business to clean up its act. All companies listed on the main market of the London Stock Exchange will have to include emissions data in their annual reports starting in April, the Department for Environment, Food and Rural Affairs. China energy firms to get renewable targets Bloomberg. Chinas biggest energy producers and grid companies will be given minimum requirements for use of renewable sources that will equal 6.5% of Chinas total electricity supply. EU launches attempt to deliver shipping emissions trading scheme Bloomberg. Consultation to set out series of market-based solutions for tackling bloc's shipping emissions. The EU is asking for views on how best to reduce greenhouse gas emissions from shipping in a move that could pave the way for the sector to follow aviation into the bloc's carbon trading scheme. For further information surrounding our news desk or the information supplied within this report please call Baron Traders Limited +44 (0)203 137 4400.
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