Jan. 14 (Bloomberg) -- European Union carbon permits rose the most in four weeks as policy makers in the bloc seek to finalize details of a plan to temporarily withhold supply in the world’s biggest greenhouse-gas market.
The December contract added 4.5 percent, the most since Dec. 17, to 4.91 euros ($6.72) a metric ton by the close on ICE Futures Europe in London after touching 4.97 euros. Trading volume jumped 60 percent from yesterday to 27.5 million tons, the most for a front-year contract since Dec. 10 and almost triple the three-month daily average.
The EU today auctioned carbon permits for 4.73 euros a ton, 4 cents above the midpoint of prevailing bids and offers for spot allowances on ICE, the biggest premium since Nov. 22, according to data from the European Energy Exchange AG in Leipzig, Germany, and ICE.
Lawmakers are seeking to mend the market after prices dropped 84 percent since 2008. They rose for a third day today as officials consider shortening a period of scrutiny of the fix from the regular three months. The EU will withhold 400 million tons of permits this year, about a fifth of supply, should it begin the plan in the first quarter and 300 million if it starts in the second quarter, according to the proposal.
Certified Emission Reductions for December rose 1 cent to 36 euro cents on ICE, the highest since Jan. 7.
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