Investors liking Carbon Trading Schemes
Nearly 700 million tons of carbon dioxide (CO2), or more than the annual CO2 emissions of Canada, were traded over six European exchanges in February, according to the data.
At a weighted average price of 9.68 euros per metric ton, this represents a trade value of 6.71 billion euros ($8.49 billion).
The volumes include EU Allowances (EUAs), the permits traded under the EU’s Emissions Trading Scheme, and Certified Emissions Reductions (CERs), the project-based carbon offsets issued by the United Nations.
February’s volumes were 61 percent above the 429.4 million metric tons traded in January, and 147 percent more than the monthly average of 280.6 million metric tons in 2008.
The bulk of the trading was done on London’s European Climate Exchange, owned by Climate Exchange plc, and Paris’ BlueNext, a joint venture between NYSE Euronext and Caisse des Depots.
Other major exchanges that trade EUAs and CERs include Nord Pool, EEX, Climex and NYMEX’s Green Exchange.
February saw a surge in trading as cash-strapped firms seeking to raise funds in the short-term dumped 2008 EUAs ahead of the issuance of 2009 permits, which carried a February 28 deadline.
As a result, spot trading was heavy at 235 million metric tons, or one third of exchange volumes. This compares to a 2008 average of around 10 percent of volumes made up by spot trading.
- FSA warning over carbon credit trading schemes Financial Services Authority warns against unregulated schemes which risk landing you with an overpriced and unsellable white elephant • The FSA consumer alert in full Carbon credit trading schemes are set to take over from landbanking as a major...
- Carbon tax and emissions trading: how countries compare As Australia unveils a radical plan to tax carbon emissions, how do China, the US, Europe and India measure up? China Plans have been announced for emissions trading systems to be rolled out in six regions by 2013 and...
- IBM Extends Partnership with WWF’s Climate Savers Program World Wildlife Fund and IBM today announced that IBM is furthering its participation in the WWF Climate Savers program, committing to a second generation Climate Savers goal to cut its greenhouse gas emissions by an additional 12 percent below 2005...
- Angela Merkel revisits carbon capture Merkel’s plan, which implements a European Union law, would help her plug a potential gap in the energy mix serving Europe’s largest economy caused by her retreat from nuclear after the disaster in Japan. It would also give E.ON and...
- Britain pledges 50% cut in carbon emissions by 2025 The British government on Tuesday pledged to cut the country’s carbon emissions in half by 2025 – an ambitious target that could be watered down if other European countries don’t cut their emissions accordingly....