Carbon Markets Weekly April 6-10

European carbon market saw a quiet week of trading with scarce price moving signals, because of Easter celebrations. A bearish pressure pushed prices down on Wednesday (April 8), as as traders took opportunity of the weak technical picture for profit taking, and persisted until Friday (April 10) due to a fall in the clean dark spread, which had contracted by €0.29/t on Thursday, according to Reuters Point Carbon.

The EUA Dec-14 contract closed the week at €6.98/t, down €0.21/t (-2.92 percent) respect to the previous Friday’s finish.

In the UN-backed CDM market, the front-year CERs closed on Friday at €0.53/t, gaining over 20 percent (10 euro cents) week-on-week.

According to data from the London Energy Brokers Association (LABA) reported by Bloomberg, the volume of CDM credit handled by the UK industry group (including ICAP Plc and BGC Partners)  fell to zero in March for the first time since 2011, when LABA started reporting monthly volumes. “The CDM is indeed facing a serious drop in demand,” Lambert Schneider, the chairman of the CDM Executive Board, told Bloomberg. “Countries and international organizations are exploring new ways of using the CDM, such as for results-based finance or in combination with domestic climate policies.” The CDM Executive Board is gathering from 13 to 17 April in Bonn, Germany, for its 83rd meeting.

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