EU benchmark carbon up 1.5 pct after UK auction

LONDON (Reuters) - European Union carbon emissions were rose 1.5 percent on Thursday following a British government auction of almost 4.9 million emissions permits.

EU Allowances for December delivery, the benchmark contract, rose 19 cents or 1.53 percent to 12.60 euros ($18.10) a tonne at 1420 GMT, adding to gains made since the morning auction.

"There was quite a healthy interest in this auction. It was nearly five times over-subscribed," a trader said.

The British government auctioned 4,886,799 European Union carbon emissions permits at 12.15 euros a tonne on Thursday.

On France's BlueNext exchange spot EUAs rose 18 cents or 1.48 percent to 12.35 euros a tonne.

Some traders and analysts had feared that the auction could put more pressure on prices after two smaller German auctions this week.

Participants sold permits on Wednesday in the hope of buying them back at a less expensive price following the auctions, traders said.

The rise of EUAs on Thursday could also be a reflection of strengthening UK gas and German power prices, traders said.

German Calendar 2011 baseload power on the EEX rose 47 cents or 0.91 percent to 52.20 euros per megawatt hour.

British prompt gas prices firmed on Thursday, while demand rose to a fresh record due to a cold spell that was forecast to last until late this month.

U.N.-backed certified emissions reductions were up 7 cents or 0.64 percent to 10.95 euros a tonne.