Dec. 10 (Bloomberg) -- European Union carbon permits for December advanced to the highest in more than three weeks as traders favored the contracts over United Nations offsets, the use of which is being restricted.
“European Union allowances have become the gold standard of EU compliance units,” Lisa DeMarco, a partner with Norton Rose LLP in Toronto, said today in an e-mailed response to questions.
EU contracts for December rose 4.3 percent to close at 7.07 euros ($9.15) a metric ton on London’s ICE Futures Europe exchange, the highest since Nov. 15.
UN envoys proposed to limit nations including Japan and New Zealand’s ability to use offsets for compliance with their own targets after this year. Developing nations wanted to encourage steeper emission cuts by rich nations and prodded them to join the extension of the Kyoto Protocol through 2020. Canada, Japan, New Zealand and Russia instead opted out.
UN Certified Emission Reduction credits for December next year rose 2 cents to 70 cents, after opening at a record low 55 cents a ton on ICE.
The climate talks in Doha did not improve the chance of increased global ambition to cut heat-trapping gases, said Trevor Sikorski, an analyst at Barclays Plc in London.
“The debate is exactly where it was before Doha started,” he said today by e-mail.
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