Supply, demand and price of EU allowances, United Nations Certified Emission Reductions and UN Emission Reduction Units may not be immediately impacted by Doha climate decisions, says Daniel Rossetto, managing director of Climate Mundial Ltd., a London-based consulting company that works in carbon markets. He was speaking yesterday in an e-mailed response to questions.
EU permits for December fell as much as 3.8 percent to 6.52 euros ($8.41) a metric ton at 7:56 a.m. on London’s ICE Futures Europe exchange. CERs declined 6.5 percent to 58 cents.
On the amendments to the Kyoto Protocol agreed in Doha:
“Kyoto has now effectively become a framework for developing countries plus Kazakhstan and Ukraine to engage with Australia’s and the EU’s carbon markets. So it will not be until new decisions are made by the EU and Australia regarding caps and rules under those schemes, including new qualitative restrictions on offset units or linking agreements, that prices will be affected.”
“Getting ERUs issued out of Russia is a very time-consuming process and the Ministry for Economic Development may not, under Russian law, issue an ERU unless there is an accompanying verification report produced by an accredited audit firm. In the end the market will see that Russia’s procedures for issuing Emission Reduction Units were actually very tight.”