EU carbon sinks to new record low – loses nearly 40% of value in January

From the told ya so department, after a small dead cat bounce yesterday due to an auction, traders are unloading today. Yesterday’s closing price was 5.02, today it is 4.64. That’s a value loss of 8% in a single day. So far, for the month of January, EUcarbon has lost almost 40% of its value, from just below $7 a ton at the end of December.


From Reuters Point Carbon:

EU carbon sinks to new depths on market fix fears  

23 Jan 2013 17:46 Last updated: 23 Jan 2013 18:10

LONDON, Jan 23 (Reuters Point Carbon) – EU carbon allowances fell by as much as 16 percent to fresh record lows on Wednesday amid fading optimism that the EU Commission will be able to push though its plans to fix the ailing carbon market and bearish analyst comments, traders said.

As said two days ago, EU carbon is now in charcoal briquette territory.

A ton of EU carbon is worth less than the smallest bag of charcoal briquettes:


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Rhoda R
January 23, 2013 2:30 pm


January 23, 2013 2:30 pm

That’s a pretty heavy bag of Briquets!

January 23, 2013 2:45 pm

Soon to be worth one briquette of charcoal. That didn’t last as long as the pet rock.

Chris Beal @NJ_Snow_Fan
January 23, 2013 2:45 pm

Now I get it, a few months ago when the world banks came out and said temptress were going to rise even higher in the coming years. Put the pieces of the puzzle together and you get suckers buying that EU carbon crap while the world bankers were unloading worthless paper again. When is someone going to lock up the inside banker crooks.
In what World Bank President Jim Yong Kim acknowledged was a “doomsday scenario,” a new study by the organization cited the 4-degree increase as a threshold that would be likely to trigger widespread crop failures and malnutrition and dislocate large numbers of people from land inundated by rising seas.
ENRON ring a bell.

January 23, 2013 2:47 pm

everybody should feel lucky you don,t live in Australia we have $23 per ton carbon tax. PM Gillard believes in the fraud the greenies which control out labor Gov,t would like $50 per ton

January 23, 2013 2:47 pm

Lets hope the EU carbon market collapses completely before the Australian election. Reminding Gillard of her promise to join the EU carbon market during the election campaign would be utterly hilarious.

January 23, 2013 3:07 pm

Perhaps it was hubristic of them to assign a value to carbon?

January 23, 2013 3:11 pm

It’s the cold weather.

Mac the Knife
January 23, 2013 3:16 pm

Argh! T’was a black month for carbon futures, mates!

January 23, 2013 3:28 pm

Bank Of Italy Throws The Book At Monte Paschi For “Hiding Derviative Documents”
As we reported previously, the stock of the oldest bank in the world, Italy’s venerable Banca Monte Dei Paschi of Siena, was halted in early trade after plunging on news that the bank had engaged in not only the previously reported secret derivative transaction with Deustche Bank to hide losses before a prior government bailout, but yet another derivative transaction, this time with Nomura, signed three years ago and whose intention, ironically, was to reduce 2012 earnings by some €220 million.What the ultimate purpose of these deals was is still unclear and will likely become apparent eventually, however it will likely require the former Chairman of the bank, Giuseppe Mussari, who served as Chair from 2006 until April 2012, and who officially quit his post as Italy’s top banking lobbyist after today’s revelations, to testify. One person whom he may testify against is none other than current ECB head Mario Draghi, who just happened to be the head of the Bank of Italy from 2006 to 2011, or the entire period when Monte Paschi was engaging in what increasingly appears to have been fraudulent activity.But don’t worry: just like in the US, nobody of signfiicance is about to go down for this “glitch” which is about to be blamed on some poor mid-level shmuck, and which nobody in the senior level management had any idea about, and certainly not the person who ultimately would have had to give the green light: the current head of the ECB.
—-Flashback ref: Deutsche Bank.—–
Deutsche Bank offices raided in carbon tax fraud probe
john from DB

John R T
January 23, 2013 3:40 pm

Carbon trade consultant [trained by A Gore] and current UNFCCC Exec. Secy. Christiana Figueres Olsen and her brother, former Costa Rica president, may decide their Central American paradise/home looks attractive: we have many trees to plant to complete the mitigation scheme agreements.

January 23, 2013 4:30 pm

French power sector CO2 rises 7.3 pct in 2012
LONDON, Jan 23 (Reuters Point Carbon) – Power plants in France emitted 7.3 percent more carbon dioxide (CO2) in 2012 versus the previous year, preliminary government data showed, after production at coal-fired power stations rose.

Gary Hladik
January 23, 2013 5:04 pm

Hmm. Carbon credits and the dollar seem to have a lot in common.

January 23, 2013 6:07 pm

so obama’s inauguration speech was the last big pump before the last big dump, can we hope?

January 23, 2013 7:39 pm

So, is the price per ton of CO2, or its carbon equivalent?

January 23, 2013 8:38 pm

Carbon market drop proves the theory that Bull Shit eventually sinks to the Ooze and Slime level at the bottom of a stink hole.
Carbon Market only floats as long as the fraud is profitable for the Hucksters!

January 23, 2013 11:23 pm

Lets see, you can chop / steal wood to heat your home (happening in Germany / Greece / others) or you can pay extreme prices for electrons with “Carbon Quatloos” attached? Decisions decisions…
So business moves to China, and ‘The Folks’ stop driving to work (as the job is gone) and spend time collecting wood to keep warm. So exactly who needs a Carbon Credit Quatloo then?…

January 24, 2013 12:32 am

Chris Beal @NJ_Snow_Fan says:
January 23, 2013 at 2:45 pm
“Now I get it, a few months ago when the world banks came out and said temptress were going to rise even higher in the coming years. Put the pieces of the puzzle together and you get suckers buying that EU carbon crap while the world bankers were unloading worthless paper again. When is someone going to lock up the inside banker crooks.”
Thanks Chris, that was amusing. BTW, when you’re old enough to be an investor yourself: It DOES help to not blindly trust some carbon scheme or what have you. So if somebody got suckered… tough.

P. Solar
January 24, 2013 12:41 am

“EU carbon sinks to new depths ”
That makes the system a total success! This is precisely the aim of technologies like CCS. The carbon budget is determined by the difference between carbon emissions and carbon sinks.
Europe has solved their emission problems. Just tie up all European emissions into carbon trading units and wait for it sink.

Bloke down the pub
January 24, 2013 2:25 am

Hopefully this will knock on the head any ideas the UK chancellor of the exchequer has about introducing a carbon price floor. The last I saw, it was going to be set at £16 per ton as from 1st April (no fooling).

Aidan Donnelly
January 27, 2013 3:00 am

Meantime in the GDRA (Gillard’s ‘Democratic’ republic of Australia):
Emissions drop signals fall in carbon tax take
23 Jan 2013
David Uren, The Australian
Carbon emissions from the electricity sector have dived in the first six months under the carbon tax, with much greater use of renewable energy and cutbacks in consumption.[This guy obviously never read up on ‘baseload’]
While the government believes the 8.6 per cent fall in carbon emissions shows its policies are working, it also means it will collect less from the tax than the $4 billion it anticipated this year.
The drop in revenue comes after the minerals resource rent tax, forecast to raise $2bn this year, failed to raise any revenue from the big three miners in the first six months of the year.
Total emissions from the electricity sector in the December half were 7.5 million tonnes lower than in the same half of 2011.
The government cautions that a big abatement task remains, cutting total emissions by 33 million tonnes from 2011 levels by 2020. The fall in electricity demand was not anticipated by the Australian Energy Market Operator and is unlikely to have been included in Treasury’s budget forecasts.
Analysis by Climate Change Minister Greg Combet’s staff shows that total electricity production in the first half of the financial year fell by 2.7 per cent, compared with the corresponding period of 2011-12.
However, the analysis shows there has also been a big change in the mix of power, with much greater use of renewable energy from hydroelectricity from the Snowy Mountains and Tasmania, and also wind farms, while there have been cuts in use of both black and brown coal.
This has reduced emissions by a further 6 per cent in the first six months of the financial year.
A spokesman for Mr Combet said there were many factors, including the carbon tax and the renewable energy target, influencing emissions in the power sector.
“The government’s clean energy policies have been implemented smoothly and are working as intended to cut carbon pollution,” the spokesman said.
“Our policies are stimulating more investment in renewable energy and clean technologies which is reducing pollution, helping to tackle climate change for future generations.”
The head of Ernst & Young regional climate change operations, Mathew Nelson, said the carbon tax would not suffer shortfalls of the magnitude expected by the government’s troubled mining tax.
“It is impacted by production in the economy as a whole and electricity demand; but variations within those are within percentage points,” Mr Nelson said.
The decline in electricity emissions could easily slice $300 million from the budget forecast of $4bn cash earnings from the tax this year.
Companies have to pay 75 per cent of their expected 2012-13 carbon tax by June 15, with the balance due in February next year.
The power sector accounts for about half of Australia’s emissions and a larger share of the carbon tax, because some of the largest emitters have free permits.
Department of Climate Change projections issued last October envisaged that emissions overall would rise by 0.4 per cent this year while emissions from the electricity sector would fall by 0.5 per cent.
However, there have been huge falls in electricity generation in both Victoria, down 8.6 per cent, and NSW, down 5.3 per cent. With changes in the energy mix, emissions in Victoria dropped 14.6 per cent while they were 10.4 per cent lower in NSW.
Consulting firm Pitt & Sherry says changes of this scale are without precedent in the 120-year history of the electricity supply industry…
Anybody care to explain how a tax can cause such a drop in emissions? Only ways I can think of is less production which = less jobs, less tax income and more welfare. All for an 8.6% drop of less than 1% of the 4% of Co2 ‘produced’ by human activity per year Additionally, with Electricity cost here in WA of .23c kw/h we are trying to cut back on power – so the airco and the fans stay off and old people suffer and probably die in snap heatwaves, even as British old people die of cold – though nobody is reporting this for the same reason they don’t report yet another boatload of single Afghan Male ‘refugees’ arriving – Government censorship.
This was trumpeted as some kind of positive thing, (with standard ad-homs aimed at Tony Abbott the opposition leader) on a friends FB page. One commentator even wrote ‘Australia is a worse polluter (co2) producer ‘per-capita’, than China ! ‘ …

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