Feb. 24 (Bloomberg) -- European Union carbon dioxide permits posted a second week of gains after they surged a record 17 percent last week.
EU carbon for December rose 1.7 percent this week on continued speculation that lawmakers will take measures to support prices. Allowances jumped last week and traded at their highest in three months after lawmakers said they may support amendments to energy law to allow withholding emission allowances from future auctions.
Permits rose 57 cents, or 6.4 percent, today to 9.43 euros ($12.70) a metric ton on London’s ICE Futures Europe exchange. That’s the biggest one-day jump since Feb. 16, the data show.
Carbon has jumped 22 percent in the year to date, compared with 8 percent for U.K. gas for summer. United Nations emission credits for December advanced 2.6 percent this week to 5.05 euros today. That’s up 20 percent so far this year.
European Union countries will next month discuss restrictions on another type of United Nations emissions permits, known as Assigned Amount Units, after 2012. The discussions may include limits on sales and the use of revenue from excess rights, according to a draft EU document.
“The market is simply not grasping the importance of this issue,” Andrei Marcu, head of the Centre for European Policy Studies’ Carbon Market Forum said in a statement. He said this is the beginning of the debate for setting aside permits within the United Nations Framework Convention on Climate Change.
“This is a very serious matter with implications for progress on defining new market mechanisms,” he said.
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