EU Carbon Permits Erase Gains to Close at Lowest Since September
European Union carbon permits fell to their lowest close since Sept. 3, even after Lithuania said nations in the 28-member bloc would this week give the go-ahead for talks on a proposal to help boost emission prices.
Front-year allowances earlier advanced as much as 4.3 percent to 4.82 euros ($6.51) a metric ton after an official from Lithuania, which holds the EU rotating presidency through the end of the year, said countries were “almost certain” to approve talks on the plan to ease a surplus by delaying auctions of some emissions allowances. Germany, the region’s largest emitter, has yet to reach a position on the proposal known as backloading.
“Germany has not given any sign that it will reach a decision on its position on backloading this week, even though talks on the proposal seem set to go ahead,” Krzysztof Piatek, a trader at Vertis Environmental Finance Plc in Budapest, said by e-mail. “Until Germany comes out with a clear view, the market is set to follow bearish fundamentals.”
Permits closed lower for a fourth day, falling 1.3 percent to 4.56 euros a ton on London’s ICE Futures Europe.
Prices fell to a record 2.46 euros a ton in April as an oversupply of EU allowances swelled to 1.8 billion tons, according to the European Commission, the bloc’s regulator. The emergency fix, which was drafted by the commission and amended by the European Parliament in July, still needs parliamentary approval and qualified majority support from member states to be enacted.
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