EU Set-Aside May Boost CO2 Price by 10 Euros, Barclays Says
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The European Union option of setting aside as many as 800 million surplus carbon allowances is “unwelcome” regulation that may add 10 euros ($13.66) a ton to prices in 2013, Barclays Plc said.
The EU carbon market, where benchmark prices are up 14 percent from a year ago, has an oversupply of about 460 million allowances for the five years through 2012, analysts led by Trevor Sikorski at the Barclays Capital investment bank in London said today in an e-mailed note. Power utilities will need much of that extra supply to hedge their forward sales of electricity over the next few years, they said.