Looks just like what happened to the Chicago Carbon Exchange is about to repeat in Europe.
Source: http://www.barchart.com/charts/futures/CKZ11
By Thomson Reuters Point Carbon
LONDON | Wed Dec 14, 2011 12:01pm EST LONDON (Reuters) –
EU carbon prices fell to their lowest ever level on Wednesday …
The ICE ECX December 2011 EUA contract fell 73 cents to an all-time low of 6.30 euros, down 10.4 percent on Tuesday’s 7.03-euro settlement. By 16.30 GMT, the contract had recovered slightly to 6.41 euros on healthy turnover of around 15 million units.
The drop sends the contract into unchartered territory, falling well below its previous low of 6.77 euros on December 6 as market traders saw few signs of respite in the EU economy to boost demand for emission permits.
“I still don’t see any bottom to this market,” said one carbon trader, who said any positive sentiment from this weekend’s landmark U.N. climate summit in Durban was purely psychological as it brought no increase in demand for permits.</p>
Read the whole story
Jo Nova writes:
The low price, 6.3 Euro, is equivalent to about $8 Australian or US.
The Australian government signed us up to pay $23A with a floor at $15 (and they think that they are creating a “free” market.)
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The Australian government signed us up to pay $23A with a floor at $15 (and they think that they are creating a “free” market.)
The current Australian government’s definition of “free market” is vastly at odds with the definition used everywhere else. They have the same problem with the definitions of “integrity” and “honesty”.
No matter how much I squint my eyes when I look at that chart,
I can not make it look like an upside down hockey stick.
Maybe if I ran the numbers through Mann’s algorithm and then displayed it upside down, Mann/Tiljander style?
🙂
At this rate, it’ll be below one Euro by spring. Who’s gonna be left holding the bag on this sad bet?
Since this is in the public eye, I bet they cannot hide the decline.
I blame capitalism for this market not working.
They try to make it to 2013 but I think the EU can call it’s self lucky if they make it to through the end of this year.
http://www.zerohedge.com/news/australian-banks-given-one-week-prepare-european-meltdown
Bull market or cow sheeeeeeeeeeet?
Tulips anyone?
Selling valueless ‘credits’ to save the earth from plant food is the foulest sort of fraud. They should all lose everything for their attempts to steal from the poor.
It will look much, much “better” if you just swivel it around the y-axis
Added to the Canadian pullout, this explains why the authorities need to start arresting people now.
When the real bosses lose real money, their underlings (sometimes called “governments”) feel the pain and start looking for even lower underlings to whip.
Maybe it’s time for a reverse split.
The market is trying to find its true level, which is about -10 Euros.
Thomson Reuters Point Carbon is the perfect illustration why this organization cannot be trusted on climate change issues. Their Trustee Sir Crispin Tickell is a stalwart of UNEP and involved in green alarmism as demonstrated by the Climategate 2.0 emails. Their newspaper in Canada, the Globe and Mail is a rabid warmist paper.
Oh my, there go the BBC pensions — up in smoke, er, down in carbon.
But can: Europe, Australia, California and now Quebec be that wrong or that stupid?
This will get worse and unlike gilt edge stocks, you can’t sell them, just transfer them. Well with gilt edged stocks at least you earned interest, and could regain some of your capital expenditure,
by selling them by transfer. Happy Christmas everyone, and I am signing off now till the new\year
Darn: Dummy me: Was thinking I should have shorted ICE ECX futures a while back; never took action. So it goes. . . .
On the bright side, climate delegate agree to keep getting paid.
Leon Brozyna says:
December 15, 2011 at 5:01 pm
At this rate, it’ll be below one Euro by spring. Who’s gonna be left holding the bag on this sad bet?>>>
There’s still going to be a Euro in the spring?
I think that should read “uncharted” territory. In any case, don’t you guys know that this would have never happened if independent thought hadn’t got in the way? The centralised planners know better, and if all their plans had gone to plan, the plan for the price of “carbon” trading above $15/tonne would have come to fruition.
Curses, foiled again!
AdderW says:
December 15, 2011 at 5:25 pm
JohnWho says:
December 15, 2011 at 5:00 pm
No matter how much I squint my eyes when I look at that chart,
I can not make it look like an upside down hockey stick.
Maybe if I ran the numbers through Mann’s algorithm and then displayed it upside down, Mann/Tiljander style?
🙂
It will look much, much “better” if you just swivel it around the y-axis
Would that be Mann’s “de-natured” trick?
davidmhoffer says:
December 15, 2011 at 5:59 pm
…coffee spew…best one-liner of the day
By spring, you will be able to buy worthless carbon credits with worthless Euros.
Steamboat Jack (Jon Jewett’s evil twin)
The Australian government signed us up to pay $23A with a floor at $15 (and they think that they are creating a “free” market.). The low price, 6.3 Euro, is equivalent to about $8 Australian
Perfect. Buy EU carbon credits for $8 and sell them for $15 in Oz. $7 profit as fast as you can turn them over. Looks like everyone in Oz can simply quit their jobs and retire. Have their broker buy/sell more carbon credits any time the nest egg falls below $1 million.
Tulip mania anyone?