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Copenhagen and carbon markets, continued

By Juliet Eilperiin
Maybe the Copenhagen Accord won't hurt international carbon markets that much after all.

European Union carbon dioixide allowances for delivery in December 2010 declined 8.3 percent on Monday. But as of this time Tuesday, they've already recovered 3 percent.

What's going on? Let's ask Abyd Karmali, president of the Carbon Markets and Investors Association, once again to explain how much this has to do with last week's events, and the future of the European Union's climate targets.

In an e-mail, Karmali calls yesterday's slide "an overreaction in the market based on fear of an unknown new international policy structure. The reality, however, is that the E.U. Emissions Trading programme is here to stay until 2020 and beyond. The only remaining uncertainty iss whether the E.U. decides to exercise its option to unilaterally move from -20% to -30% by 2020. It is possible that some market participants believe that this is less likely in the short-term, hence the sell off yesterday."

In other words, investors are looking to see whether EU officials pursue the deeper carbon cuts they had promised--30 percent below 1990 levels by 2020--in the context of a more ambitious political agreement in Copenhagen. Without it, they may opt for a 20 percent reduction instead. British Prime Minister Gordon Brown has said over the past few days he still hopes the E.U. adopts the 30 percent target, but several E.U. officials have said they will likely choose the 20 percent goal instead.

At this point we'll just have to watch and see what happens. And invest in carbon allowances--at your own risk, of course.


Juliet Eilperin

 |  December 22, 2009; 7:59 AM ET Save & Share:  Send E-mail   Facebook   Twitter   Digg   StumbleUpon   Technorati  
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Here are a Few of the MANY Scientists Who Believe Global Warming is Primarily Caused by Natural Processes and NOT caused by Co2.

- William M. Gray, Professor of Atmospheric Science, Colorado State University [1] [2]

- Sallie Baliunas, astronomer, Harvard-Smithsonian Center for Astrophysics [1]

- Don Easterbrook, emeritus professor of geology, Western Washington University [1]

- Khabibullo Abdusamatov, mathematician and astronomer at Pulkovskaya Observatory of the Russian Academy of Sciences [1]

- Fred Singer, Professor emeritus of Environmental Sciences at the University of Virginia [1] [2]

- Frederick Seitz, retired, former solid-state physicist, former president of the National Academy of Sciences [1]

- Willie Soon, astrophysicist, Harvard-Smithsonian Center for Astrophysics [1]

- George V. Chilingar, Professor of Civil and Petroleum Engineering at the University of Southern California [1]

- Ian Clark, hydrogeologist, professor, Department of Earth Sciences, University of Ottawa [1]

- Richard Lindzen, Alfred P. Sloan Professor of Atmospheric Science at the Massachusetts Institute of Technology [1]

I will listen to these guys instead of Al Gore who thinks the “Earth’s core temperature is several millions of degrees”.

Posted by: Senator_Salesman | January 4, 2010 7:51 PM
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It is sad that Obama went to Copenhagen to sign away our sovereignty to the United Nations based on this Junk Science. The Global Warming hoax is the biggest Scam in the Last 100 years! Thank God Cap and Trade will fail miserably in the Senate this year. Wake up America! Green is the new Color of Socialism. Green Politicians like Al Gore and John Kerry don’t care about the environment. It has been proven that Al Gore will make Billions if Cap and Trade passes (which it won’t). Doesn’t that sound like a conflict of interest? This is about wealth re-distribution. They want to take American money and give it to Communist countries to help Fight the theory which is global warming. Trust the U.N. anybody? Remember oil for food? Wikipedia it if you don’t know what happened.

Anybody that does just a little research of their own on this subject will discover what a fraud it is. Discover for yourself America. Google "climategate"

Posted by: Senator_Salesman | January 4, 2010 7:50 PM
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