Carbon Markets Weekly 2-6 March

European carbon market took a downward trend last week due to bullish signals from the energy complex and the MSR political debate in Brussels.

The deadline for the free allocation of 2015 allowances expired on Feb. 28 and the European Commission on Tuesday (March 3) issued a table listing the number of allowances that each EU Member State is allowed to allocate for free. An update will be published on 17 March 2015, the document says.

According to Reuters Point Carbon analysis, fear that industrials might sell their new permits seemed to have contributed to the fall in the EUA price early in the week, while leaked details of an MSR compromise proposal text prepared by the Latvian presidency in the EU Council (proposing the MSR launch in mid 2019 and  the return of unallocated EUAs to the market) contributed to a second downturn on Thursday (March 5).

The EUAs Dec-15 contract closed on Friday at €6.85/t, losing €0.4/t (-5.52 percent) week-on-week.

In the UN-backed CDM market, the CER contract for December 2015 closed at €0.42/t, up €0.03/t compared to the previous Friday’s finish.

(Market analysis and data by Thompson Reuters PointCarbon, our data visualization using Tableau Public)