Looks just like what happened to the Chicago Carbon Exchange is about to repeat in Europe.
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.)