March 21 (Bloomberg) -- European Union emission permits for December rose to their highest level in more than two weeks after the EU presidency said governments were closer to supporting a rescue plan for the carbon market.
The benchmark December futures contract climbed as much as 15 percent before closing 11 percent higher at 4.42 euros ($5.70) a metric ton on London’s ICE Futures Europe exchange, the highest settlement since March 4. The contract has gained 26 percent in the past two sessions, ICE data show, the biggest two-day increase since Feb. 4.
There is growing support among EU governments for an amendment to EU emissions law that would enable delaying auctions of some carbon permits, an EU presidency official said, asking not to be identified citing policy. Slovenian and Irish government officials today said their countries were in favor of delaying auctions to strengthen the emissions market.
“The market’s optimism was rewarded today,” Milan Hudak, an analyst at Virtuse Energy in Prague, said by e-mail. “The biggest prize, a final decision in favor of backloading, is still far away.”
UN Certified Emission Reductions for December were unchanged at 32 euros cents a ton on ICE Futures.
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