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Emitters Use Spare Carbon for Options Cash, Climate Mundial Says

Greenhouse-gas emitters in Europe can generate more cash selling options linked to their spare carbon permits instead of offloading the allowances in the forward market, according to Climate Mundial.

Emitters get a premium of 91 euro cents a metric ton for selling calls on the right to buy June carbon at 5 euros a ton, according to ICE Futures Europe exchange prices as of March 4. That compares with an 8-cent premium for the June futures contract relative to the current spot rate of 4.49 euros a ton.