Nov. 27 (Bloomberg) -- European Union carbon permits dropped to the lowest in five days as the pace of Certified Emission Reduction supply since September was exceeded by Emission Reduction Units.
EU permits for December declined 1.5 percent to 6.74 euros ($8.73) a metric ton on the ICE Futures Europe exchange in London at 10:14 a.m., the lowest since Nov. 22. Factories and power stations in the EU program can use a limited portion of United Nations offset credits as a cheaper form of compliance. Certified Emission Reduction credits for December rose 1 cent to 75 cents a ton.
Supplies of ERUs surged by 175 million, or 68 percent, to 432 million tons in the period to Nov. 16 from Sept. 19, according to data e-mailed yesterday by the United Nations Framework Convention on Climate Change. That’s almost triple the 63 million tons of CERs issued in the same period.
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