Skip to comments.Carbon prices fall to new record low — $4 per ton (Australians will pay $23 — that’s 500% more!)
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 Australias fixed price. These are the products most comparable to Australias $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 EUAs 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 EUs Emissions Trading Scheme.
The benchmark December 2012 secondary CER contract closed at 3.18 euros, the days high, but down 2 percent on Fridays 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, theres 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.
Natural gas prices are falling, so electricity producers are switching to the cheaper and lower emission fuel, which means they dont need to buy as many carbon permits.
As Ive said all along, those who call for a free market solution are the ones who dont know what a real free market is.
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)
California Democrats are doing their best to get something going....
So it appears not all carbon credits are equal, then, are they?
When were the men in Australia emasculated? How could they let this happen?
It’s a Global Scheme....is this the first thread you’ve read on the Global Warming Hoax?
I poop out carbon credits nearly every morning. If I’d only known how much Australians buy them for, I’d be rich!
I’m a regular reader of WUWT.
I also have fairy dust certificates for sale.
Ain't this makin up stuff great !!