After three months of rising steadily in April, May and June, EU permit prices slumped in July and then recovered somewhat in the first week of August. Bloomberg reports that the prices of EU carbon allowances didn’t change too much this week after the economy contracted and RWE’s decision to purchase more EUAs for its UK operations. EUAs for December reached USD 35.37/metric ton, an increase by 8 cents and CER prices dropped to USD 29.05
The EU economy, which is a global leader in greenhouse gas trading slackened for the first time in its second quarter – the GDP fell by 0.2 per cent as compared to the first quarter as a result of slowing down of major EU countries.
Also, the UK unit of RWE, Germany’s second biggest power generator announced that it will need to purchase more EUAs than expected because it will be using a greater amount of coal than previously thought.