By David Boles

This past week saw the European Union complete their carbon inventories and receive the allowances from around 12,000 installations which fall under the EU Emission Trading Scheme. The commercials involved have submitted their mandated cap by the deadline specified by the European Commission, the 30^th April. In total, 11.27 billion EUA's have been surrendered by the European Installations. European organisations have availed of the offset market to the tune of 277 million CER's (Clean Development Mechanism) and 23.39 million ERU's (Emission reduction units- Joint implementation Mechanism). If we take settlement prices, from the 29^th April, the cost of spot EUA and spot CER on the ICE exchange were €16.86 and €13.43 respectively. The value of surrendered EUA's and CER'S for emissions under the European cap and trade system was €190 billion and €3.72 billion respectively. There has been a marked increase in the use of offset credits, i.e CER's for compliance in 2010 compared to previous years.

Analysts predict that a record number of CER's will be issued in 2011. The likely effect of this if it does transpire is that any price increases maybe somewhat stunted.In other News, the European Commission have announced that they will use encryption methods to conceal Carbon credit numbers in order to avoid the liquidity crunch that occurred over the compliance period. A period, which should be the most liquid time of the year. The cyber attacks linger on. The carbon market have suffered gravely due to these attacks and only surplus and free allocation have saved it from complete failure.

Other News:

• The European Commission are to encrypt serial numbers on all carbon credits to ensure there is no repeat of the January 2011 cyber attacks.
• Emissions in Spain dropped by 3.7% in 2010.

By David Boles

This past week saw the European Union complete their carbon inventories and receive the allowances from around 12,000 installations which fall under the EU Emission Trading Scheme. The commercials involved have submitted their mandated cap by the deadline specified by the European Commission, the 30^th April. In total, 11.27 billion EUA's have been surrendered by the European Installations. European organisations have availed of the offset market to the tune of 277 million CER's (Clean Development Mechanism) and 23.39 million ERU's (Emission reduction units- Joint implementation Mechanism). If we take settlement prices, from the 29^th April, the cost of spot EUA and spot CER on the ICE exchange were €16.86 and €13.43 respectively. The value of surrendered EUA's and CER'S for emissions under the European cap and trade system was €190 billion and €3.72 billion respectively. There has been a marked increase in the use of offset credits, i.e CER's for compliance in 2010 compared to previous years.

Analysts predict that a record number of CER's will be issued in 2011. The likely effect of this if it does transpire is that any price increases maybe somewhat stunted.In other News, the European Commission have announced that they will use encryption methods to conceal Carbon credit numbers in order to avoid the liquidity crunch that occurred over the compliance period. A period, which should be the most liquid time of the year. The cyber attacks linger on. The carbon market have suffered gravely due to these attacks and only surplus and free allocation have saved it from complete failure.

Other News:

• The European Commission are to encrypt serial numbers on all carbon credits to ensure there is no repeat of the January 2011 cyber attacks.
• Emissions in Spain dropped by 3.7% in 2010.