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Carbon prices fall to new record low — $4 per ton (Australians will pay $23 — that’s 500% more!)
JoNova ^ | July 17th, 2012 | joanne

Posted on 07/16/2012 9:24:38 PM PDT by Ernest_at_the_Beach

So much for that global “free” market.

Scott the trader writes to explain that the EU “CER” credits are the ones people can buy and exchange for Australian Carbon Credit Units (ACCUs) but they have sunk to $4. The more expensive $9 EUA units that most commentators mention, are not exchangeable in the Australian market:

The EU CER price is equivalent to about A$3.80  per tonne…  Almost $20 below Australia’s fixed price.    These are the products most comparable to Australia’s $23/Tonne as it will be CERs that we can surrender instead of Australian Carbon Credit Units (ACCUs) to satisfy an Australian Clean Energy Scheme liability.   It is incorrect as most media commentators are doing in Australia to compare to EUAs which are at about $9 Australian.  Australia cannot access EUA’s to satisfy our carbon liabilities.  The only comparison is $3.80/T for a CER and $23/T for an ACCU.

So most commentators are comparing the wrong type of carbon  credits, and the Australian market is even more overpriced than  people recognize. Australians will be paying 500% more than the largest carbon market in the world.

The Australian scheme is the most expensive, and most ambitious in the world. On top of that we are a distant market based heavily on fossil fuels, both as a natural resource to export, and with other industries.

LONDON, July 16 (Reuters Point Carbon) – CER prices sank to a new low on Monday within touching distance of 3 euros as traders continued to offload the offsets amid plentiful supply of cheaper ERUs, which can also be used for compliance in the EU’s Emissions Trading Scheme.

The benchmark December 2012 secondary CER contract closed at 3.18 euros, the day’s high, but down 2 percent on Friday’s close as traders continued to unwind long positions.

In afternoon trade the U.N. offset slid to a record low of 3.08 euros.

“The feeling is that with increased ERU supply coming into the market, there’s not much reason to hold onto CERs, particularly because of oversupply in the carbon market as a whole,” said one trader, adding that 3 euros was a critically- important support level.

(Paywall protected)

Natural gas prices are falling, so electricity producers are switching to the cheaper and lower emission fuel, which means they don’t need to buy as many carbon permits.

As I’ve said all along, those who call for a “free market” solution are the ones who don’t know what a real free market is.

VN:F [1.9.13_1145]


TOPICS: Conspiracy; Science; Weather
KEYWORDS: carbon; carboncredits; carbontax; globalwarminghoax

1 posted on 07/16/2012 9:24:44 PM PDT by Ernest_at_the_Beach
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To: Ernest_at_the_Beach

It has to be $23 so Julia can pay her pre-election bribes, and more importantly. advertise her pre-election bribes (Bribes start to be paid in 12 months, advertising is now)


2 posted on 07/16/2012 9:36:26 PM PDT by Oztrich Boy (Literals will believe anything.)
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To: Oztrich Boy

California Democrats are doing their best to get something going....


3 posted on 07/16/2012 9:39:45 PM PDT by Ernest_at_the_Beach (The Global Warming Hoax was a Criminal Act....where is Al Gore?)
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To: Ernest_at_the_Beach

So it appears not all carbon credits are equal, then, are they?

Pure thievery.


4 posted on 07/16/2012 9:40:18 PM PDT by wtd
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To: Ernest_at_the_Beach

When were the men in Australia emasculated? How could they let this happen?


5 posted on 07/16/2012 9:49:09 PM PDT by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: Moonman62

It’s a Global Scheme....is this the first thread you’ve read on the Global Warming Hoax?


6 posted on 07/16/2012 9:53:36 PM PDT by Ernest_at_the_Beach (The Global Warming Hoax was a Criminal Act....where is Al Gore?)
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To: Ernest_at_the_Beach

I poop out carbon credits nearly every morning. If I’d only known how much Australians buy them for, I’d be rich!


7 posted on 07/16/2012 10:07:16 PM PDT by Dogbert41 ("...The people of Jerusalem are strong, because the Lord Almighty is their God" Zech. 12:5)
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To: Ernest_at_the_Beach
That could be because 'carbon units' are not worth much...

carbon units LOL

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8 posted on 07/16/2012 10:12:04 PM PDT by Cyber Ninja
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To: Ernest_at_the_Beach

I’m a regular reader of WUWT.


9 posted on 07/16/2012 10:23:57 PM PDT by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: Cyber Ninja
I've just decided I have several million carbon units in my account. After I sell them, I will just say I have a several million, make that billion more to sell and sell those.

I also have fairy dust certificates for sale.

Ain't this makin up stuff great !!

10 posted on 07/16/2012 10:33:09 PM PDT by precisionshootist
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To: precisionshootist
Image and video hosting by TinyPic
11 posted on 07/16/2012 10:44:24 PM PDT by Cyber Ninja
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