EU Carbon Falls Before Emissions Data Expected to Show Decline

Carbon permit prices fell before European Commission data today that will probably show factories and power stations emitted less greenhouse gases last year than in 2011.

European Union carbon allowances for December fell 4.8 percent to 4.58 euros a metric ton on the ICE Futures Europe exchange in London at 9:53 a.m. The contract jumped 16 percent last week.

Carbon emissions in the world’s biggest greenhouse gas market by traded volume may have dropped 0.8 percent to 1.88 billion metric tons in 2012, according to a Bloomberg New Energy Finance estimate on March 25. Analysts at Thomson Reuters Point Carbon predict a decline of 1.4 percent, half the pace of 2011, while Jefferies Group Inc. and Virtuse Energy sro in Prague both estimate a drop of 0.6 percent.

Today’s data will include emissions from airlines for the first time. The information may not be complete for the 31 countries in the EU’s emissions trading system.

Certified Emission Reduction credits for December dropped 4 cents, or 12 percent, to 29 euro cents a ton on ICE.

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