Jan. 11 (Bloomberg) -- European Union carbon fell to a record after the bloc sold an all-time-high volume of allowances this week. United Nations Emission Reduction Units for December plunged 41 percent, their biggest-ever one-day drop.
The EU contract for December declined 2.2 percent to close at 5.92 euros ($7.91) a metric ton on London’s ICE Futures Europe exchange. The weekly drop was 6.6 percent. United Nations Certified Emission Reductions for December dropped 11 percent to 42 euro cents a ton at 4:59 p.m.
The bloc sold 14.7 million tons of prompt-delivery EU permits this week and will sell 18.8 million tons next week. That’s the biggest volume slated for this year, according to data from the European Energy Exchange AG in Leipzig, Germany, and ICE.
The EU commission in Brussels yesterday proposed rules governing use of ERU offsets issued by so-called Track 1 and Track 2 processes of the Joint Implementation mechanism of the 1997 Kyoto Protocol. The rules were not as restrictive as indicated last year by the regulator, said Daniel Rossetto, managing director of Climate Mundial Ltd., a London adviser in carbon markets. ERUs eligible for compliance in the EU “will now be less scarce,” he said by e-mail.
To contact the reporter on this story: Mathew Carr in London at firstname.lastname@example.org
To contact the editor responsible for this story: Lars Paulsson at email@example.com