| Carbon Week |
| Carbon Week |
The big question remains what will happen to existing obligations in the GGAS market now that DSA producers will no longer be contributing to supply from 1 January 2009? In theory, if the current GGAS obligations are maintained and DSA production is removed, the supply/demand status quo will be altered considerably. In 2007 almost 10 million NGACs were created via the DSA rule. NEET will remove this contribution, but the NGAC surplus still remains in the 10s of millions'.
(Full Article)The "machiavellian malevolence or the melancholy meanderings" of the crashing price of greeen instruments could be relieved with options, argued options-seller, Ken Edwards of Nextgen.
(Full Article)Any old iron - and other metals scrap - were now traded globally, and a new business opportunity had appeared - as recycled metals earned carbon credits. Mitsui had set the metals recycling business as one of its key strategic business activities, and intended to earn carbon credits, replacing production with recycling. Mitsui reported China had recently bought “ferrous deep sea cargoes”; that is, shiploads of scrap metal.
(Full Article)Trading in spot Renewable Energy Certificates - RECs - market followed a similar pattern to NGACs with nothing doing in the early part of the week.
(Full Article)In the NGAC market, with many participants awaiting follow up to the NSW Energy Efficiency Target (NEET) announcement, the trading week began slowly.
(Full Article)Activity in the options market this week was limited to a Cal09 52.50 REC Put that traded at $5.10 on Monday. REC and NGAC markets moved lower.
(Full Article)Nextgen reported the week began with wide NGAC preads and with many in the market exhibiting only a passing interest as REC prices were crashing.
(Full Article)The trend was once again a downward one as the spots and Cal09s came off further. The spot market has now softened to a level ($6.00) that it has not breached since January.
(Full Article)