SOURCES: EEX; TECSONPosted on 01/20/2009 10:30:48 PM PST by neverdem
Falling oil prices slash value of greenhouse gas emission allowances.
SOURCES: EEX; TECSONThe price of European Union (EU) allowances for carbon dioxide emissions has reached an all-time low, hit by falling oil and gas prices, and expectations that economic recession will lead to reduced energy demand.
Under the EU's mandatory emission trading system - set up in 2005 and still by far the largest such scheme in the world - power plants and other CO2-intensive industries can buy emission allowances that allow them to exceed their government-allocated CO2 caps. In 2008, the equivalent of almost 5 billion tonnes of CO2 was traded on the global market, an 83% rise on 2007.
At close of trading on 19 January, allowances to emit one extra tonne of CO2 in 2009 were selling at just €11.65 (US$15.32) on European exchanges that trade carbon, such as the European Energy Exchange (EEX) in Leipzig, Germany (see graph). The price of allowances saw a recent peak of above €30 in July 2008, but falling oil and gas prices have encouraged electricity generators to switch from burning coal to cleaner natural gas, reducing demand for emission allowances.
Given the dire economic outlook, analysts believe that it will be difficult to stop the market's negative trend in the next few months.
The EU's emission trading system is due to be reformed in 2013 to reduce the amount of free allowances handed out to companies (see Nature 456, 847; 2008).
algore is like seriesly pi$$ed. What is WRONG with you peoples...
You mean by not driving makes everyone poorer, except Al Gore’s carbon credit scheme to make him rich?
Al Fraud Gore.
BVMP!
Algor’s cash cow has gone dry. How sad.
Is this the same market that, IIRC, crashed once before in Europe? Haven’t they already reduced the number of *free* credits given out, in order to prop up the market?
I get so confused.
That’s too bad for Goldman Suchs (a major carbon-scheme investor) and recipients of its campaign cash (70% Dims, 30% Pubs.)
Bush and the Bush-Haters What a contrast with the Obama worship!
Conservatism's Dilemma: To be or not to be in the GOP
Some noteworthy articles about politics, foreign and military affairs, IMHO, FReepmail me if you want on or off my list.
I wonder if obama is going to go ahead with his plans to carbon tax coal power plants into oblivion.
listen... warming, cooling, it was 50/50. so i took a shot!!!
Ohh WOE is me... whys everybody pickin on me???
Under the EU's mandatory emission trading system - set up in 2005 and still by far the largest such scheme in the world - power plants and other CO2-intensive industries can buy emission allowances that allow them to exceed their government-allocated CO2 caps... At close of trading on 19 January, allowances to emit one extra tonne of CO2 in 2009 were selling at just €11.65 (US$15.32) on European exchanges that trade carbon, such as the European Energy Exchange (EEX) in Leipzig, Germany (see graph). The price of allowances saw a recent peak of above €30 in July 2008, but falling oil and gas prices have encouraged electricity generators to switch from burning coal to cleaner natural gas, reducing demand for emission allowances... The EU's emission trading system is due to be reformed in 2013 to reduce the amount of free allowances handed out to companies.Thanks neverdem.
Thanks for the ping!
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