The price of an option to buy United Nations Certified Emission Reduction credits at 2.50 euros ($3.17) a metric ton plunged 21 percent to a record after 9.3 million tons changed hands over the past two days.
The option’s price dropped 7 cents yesterday to 27 cents a ton, according to settlement data from the ICE Futures Europe exchange in London. December futures first dropped below the strike price on Sept. 5 and declined 2.9 percent today to 2.33 euros a ton as of 9:56 a.m. London time.
The exchange cleared 8.3 million tons of the option on Sept. 5 and 1 million tons yesterday, its first volumes, the data show. At the settlement price on Sept. 5 of 34 cents a ton, the total amount cleared would have cost 3.2 million euros.
CER futures are declining amid a glut in the EU carbon market, which has restricted the use of offsets for compliance with its climate-protection laws.
Factories, power utilities and airlines in the European market, the world’s biggest cap-and-trade program by traded volume, can use EU permits or a limited amount of cheaper CERs.