EU Carbon Falls to Near Record After Sale Below Prevailing Price

European Union carbon permits fell to near a record after the bloc sold allowances in an auction at a price below the prevailing market level for a second time this week.

The contract for December declined 2.6 percent to 6.05 euros ($8.01) a metric ton on London’s ICE Futures Europe exchange, the lowest close since the record on Dec. 4. United Nations Certified Emission Reductions for December rose 1 cent to 47 euro cents a ton at 4:59 p.m.

The bloc sold 3.5 million tons of prompt-delivery EU permits at 5.93 euros a ton in the auction, held by the European Energy Exchange AG in Leipzig, Germany. Day-ahead futures for Phase 3 permits eligible through 2020 were at 5.98 euros at the auction close, the mid-point between the best bid and offer.

The EU scheduled a vote on Jan. 23 on draft carbon-registry regulation that may include limits on some imported emission credits and it’s seeking further talks on an emission-permit glut fix, according to an EU document obtained by Bloomberg.

Member states will continue discussions on the commission’s proposal to delay auctions of 900 million carbon permits in the three years through 2015, according to the document. Several nations, including the U.K. and Germany, were undecided at their previous meeting about whether they would back the measure, known as backloading, an EU official, who declined to be identified, said last month.

German and French power for 2014 declined to records as carbon slipped. German 2014 power, a European benchmark, lost as much as 0.9 percent to 44.35 euros a megawatt-hour, while its French counterpart slid 0.5 percent to 47 euros.

Before it's here, it's on the Bloomberg Terminal.