EU Carbon Permits Retreat as German 2011 Power Erases Gains

European Union carbon allowances for December fell to the lowest price in two weeks as German power erased earlier gains, damping demand for emission permits.

EU allowances for December lost 1.1 percent to 14.67 euros ($19.37) as of 6 p.m. in London on the ICE Futures Europe exchange. That’s the lowest price since Nov. 16.

German baseload power for next year, a European benchmark, declined 0.1 percent to 49.90 euros a megawatt-hour, according to broker prices on Bloomberg. The contract earlier traded as high as 50.30 euros. Carbon permits are linked to power prices because utilities often buy emissions allowances when they sell electricity forward.

To contact the reporters on this story: Ewa Krukowska in Brussels at ekrukowska@bloomberg.net Catherine Airlie in London at cairlie@bloomberg.net

To contact the editor responsible for this story: Stephen Voss on sev@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.