EU Carbon Ignores Aussie Carbon Plan Rejection
Author: Nina Chestney
LONDON - Prices for European carbon emissions futures ignored Australia's rejection of an emissions trading scheme on Thursday, rising with firmer German power and oil prices, traders said.
"The market doesn't really look at any of this global stuff," a European carbon emissions trader said.
Australia's parliament rejected a plan for an ambitious emissions trade regime as expected on Thursday, bringing the nation closer to a snap election and prolonging financial uncertainty for major emitters.
The European carbon market moves according to more specific emissions data and macro-economic factors, rather than news on planned global emissions schemes, traders said.
"Very little relating to climate talks, new trading schemes or analysts forecasts moves the EUA market currently. Verified emissions numbers tend to be the main kind of news you would expect to move the market," the trader said.
EU Allowances (EUAs) for December delivery rose 19 cents or 1.32 percent to 14.55 euros ($20.55) a tonne at 6:26 a.m. EDT, with volume at 2,466 lots.
EUAs climbed as high as 14.65 euros in opening trade on the back of firmer prices for German power and U.S. crude oil.
Traders said EUAs were slightly more bullish than in the previous session, at the top of this week's trading range of 14.10-14.60 euros.
"Financials, day traders are on the buy side. Utilities are absent," a trader said.
German Cal '10 baseload power on the EEX was up 59 cents or 1.18 percent at 50.59 euros per megawatt hour.
U.S. oil rose back above $71 a barrel on Thursday after positive economic news from the United States and two of Europe's largest economies.
Certified emissions reductions (CERs) rose 13 cents or 1.03 percent to 12.79 euros a tonne. The EUA-CER spread was at 1.76 euros.