Carbon futures wilt on climate pact delay
LONDON - European Union carbon emissions futures wilted slightly on Friday but were largely unaffected by news that a U.N. climate pact will likely be delayed into 2010, traders said.
EU Allowances (EUAs) for December delivery edged down 6 cents or 0.42 percent to 14.31 euros ($21.25) a tonne at 1022 GMT, with very light volume at 859 lots traded.
Prices are down slightly but it's not a big movement. Volume is so thin and renewed pessimism over Copenhagen won't be helping, an emissions trader said.
Climate negotiators prepared to ditch a December deadline for agreeing a new pact as U.N. talks in Barcelona drew to a close on Friday with little progress made.
A U.N. climate treaty may need an extra year or more, beyond the original December deadline, delegates said this week.
EUAs opened higher at 14.45 euros on Friday, after a controversial climate change bill cleared its first hurdle in the U.S. Senate on Thursday, allowing President Barack Obama to tout progress in the run-up to next month's global warming talks in Copenhagen.
The U.S. vote did give prices a bit of a push yesterday afternoon, but it wasn't going to last and we are back on a downward trend today, another trader said.
Democrats are likely to fall far short of their goal of passing legislation in the full Senate before Copenhagen as the bill lacks enough support for full approval.
EUAs also ignored crude oil gains on Friday.
EUAs are on a directionless road to Copenhagen. I don't expect any major moves before that, another trader said.
Oil rose above $80 a barrel, supported by positive U.S. economic data, but wariness ahead of monthly jobs data from the United States limited gains and kept its price below the psychologically key $80 level.
German Calendar 2010 baseload power on the EEX was down 15 cents or 0.32 percent at 47.35 euros per megawatt hour.
Certified emissions reductions were down 3 cents or 0.22 percent to 13.41 euros a tonne.
(Reporting by Nina Chestney; Editing by xxx)
© Copyright Thomson Reuters 2024. All rights reserved.