EU Carbon Volumes Rise to Second Highest Ever Before Sales Start

Trading in European Union carbon permits rose to the second highest ever this month on ICE Futures Europe in London, as the bloc prepares for an unprecedented program of sales.

October futures volumes so far across contracts advanced to 610 million tons, according to data from the exchange through yesterday. The bourse needs to handle 45 million tons today to break the June 2011 record of 654 million tons. Volume last reached the level needed on Oct. 17, when 58.9 million tons changed hands.

EU carbon for December advanced 0.9 percent to 8.22 euros ($10.69) a metric ton on ICE, as the European Commission in Brussels plans to temporarily curb supply in the phase beginning next year.

The European Energy Exchange AG said yesterday some nations in the bloc including Poland, the Czech Republic and the Netherlands were not yet ready to sell allowances in a program of auctions starting Nov. 13.

About 40 million of the 120 million tons of volume for sale in the auctions this year is subject to nations being ready to offload the allowances, the exchange said.

To contact the reporter on this story: Mathew Carr in London at m.carr@bloomberg.net

To contact the editor responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net

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