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.)
Jørgen F. says:
December 16, 2011 at 8:12 am
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I won’t bother responding to the bulk of your not entirely accurate harangue against the USA, but I will ask who kept the communists out of Western Europe?
The real question is whether a carbon credit purchased for $5 allows the same amount of smugness to a greenie (with a limo and large estate of course) that one purchased at $15 provided?
And if credits drop to zero, can green absolution still be purchased?
The smart ones have already made a stack of cash and got out , this market is dead unless laws start to be made to make it viable again and given the current economic situation that situation is very unlikely .
UK: I have appealed to you on numerous occasions over several years to get out of the EU nightmare and make a free market with the English-speaking world that you created employing the real economics that you also invented (I also invited hard-working Germany to come with you). The offer still stands but you will have to also leave behind the European politics that was designed to thwart the Industrial Revolution in the first place. The people you leave behind will also be happier without you. Probably carbon prices would go back up for them along with just about every other kind of price, too. Either I am not a good enough persuader or I have over estimated you-all.
Jorgen F,
That is as ugly and ill intentioned rewrite of history as I have seen in some time. Whatever the source of your hate is for America, stop and consider than not only are your statements gross misrepresentations of the facts, but that you are free to make such ignorant and unwarranted statements in a public forum only because the freedom of speech you enjoy was bought and paid for in blood by those you denigrate.
If carbon credits go to zero, I will purchase a whole slew of them. I trust I will still get the tax break?
Does anyone know how to sell Euro carbon credits to Australia? We could sell them to the Aussies at below market price and still make a killing.
To bubbagyro: Carbon credits on the Chicago Carbon Exchange went to zero already. Maybe you can get some of those.
To Jørgen F.: I think you took a wrong turn somewhere. This is not the Nazis blog you apparently thought you have arrived at.
Regulators sue former top Fannie, Freddie execs
http://www.reuters.com/article/2011/12/16/us-fannie-freddie-sec-idUSTRE7BF16F20111216
flashback:
HEAT OF THE MOMENT
Disgraced Fannie Mae deep in carbon scheme
Mortgage giant set to collect millions marketing homeowners’ energy savings
http://www.wnd.com/?pageId=171457
There are two possibilities for this decline which cannot be hidden:
Firstly: that there is an element of climate realism finally creeping into the markets and the smart money is taking the view that all the “scientific” hype will be discredited sometime soon.
Secondly: the Euro is in what appears to be a terminal fix as Euro-land leaders cannot and have not sorted the means for fixing structural deficits and debts, imbalances between the Northern and Southern halves of the Eurozone; and so on. All UK banks are now cutting their risks and exposure to European Banks which have just had their credit ratings downgraded, or are about to. There is widespread talk of zombie banks within the Eurozone i.e. those banks which can only stay afloat by continual borrowings from their central banks, because other banks will not lend to them.
Just about everything to do with the Euro, which paradoxically still remains overvalued on the markets, is going downhill. And EU carbon credits is part of the same high risk, low income scene. So if you have carbon credits, sell them.
David E.;
Also, there is the wee problem that virtually all the “CO2 reduction” schemes selling credits turn out to be dodges and fudges. Trees promised but never planted, factories closed but output replaced from somewhere with even higher emissions, promises not to manufacture GHG super-chemicals that weren’t going to be produced anyway, VAT refunds claimed for taxes never paid, and on and on and on. I.e., the whole operation is a wide-open web of (frequently criminal) deceit.
Nice work if you can get it, but really bad to be on the buying end of the stick.
6.30 euros – for imaginary gas futures, offsets, exchanges, credits, indulgences, mafia protection money.
This silliness was overpriced at a nickel in the Chicago Imaginary Securities Carbon Dioxide Except No Actual Carbon Dioxide Market Scheme Trading Casino.