European Union carbon permits surged the most in two weeks after a German lawmaker said Chancellor Angela Merkel shares her environment minister’s stance on reducing a surplus of the allowances.
The December contract jumped 9.6 percent, the most since Feb. 13, to close at 4.90 euros ($6.41) a metric ton, according to data from the ICE Futures Europe exchange in London. They earlier fell as much as 2.7 percent.
It’s a “myth that repairing the emissions trading system is anti-business,” Christian Ruck, deputy chairman of the ruling CDU/CSU coalition in German parliament, told reporters in Berlin. A plan to delay the sale of some allowances was a temporary solution to the market’s glut, he said.
Environment Minister Peter Altmaier backs the November EU Commission proposal to temporarily withhold 900 million tons of carbon permits through 2015. Economy Minister Philipp Roesler opposes intervention in the market, the world’s biggest greenhouse gas program by traded volume.
Germany is auctioning 5 million tons of allowances tomorrow after a sale of permits failed last week when bids didn’t reach the reserve price, according to the European Energy Exchange AG in Leipzig.
December Certified Emission Reduction credits dropped 2 cents to 35 cents. March CERs fell 4 cents to 27 cents after yesterday’s 14 cent jump.