EU carbon stalls as used CERs sold on BlueNext
LONDON (Reuters) - European carbon emissions futures stalled on Wednesday after emissions exchange BlueNext suspended trading of certified emissions reductions after some recycled credits were sold on the market.
EU Allowances for December delivery inched up 5 cents to 13.03 euros ($17.80) a tonne at 1044 GMT (6:44 a.m. ET), hardly moving in the past hour's trade. Volume was low at 1,127 lots traded.
Certified emissions reductions on the European Climate Exchange (ECX) rose 6 cents or 0.53 percent at 11.40 euros a tonne.
BlueNext said on Wednesday some recycled CERs had been sold on the market and halted trade in CERs while it investigated the issue.
Last week, Hungary said it had sold 2 million emissions permits which its companies had already counted toward their carbon targets, raising concerns of double counting in the European Union scheme to fight climate change.
"Prices are slightly up, but nothing major. The market is still absorbing the news that CERs may have been resold," an emissions trader said.
ECX, Climex and Sendeco2 said they had not found any evidence of CERs being sold on either of their exchanges but were completing the necessary checks.
Traders called for the European Commission to clarify how it planned to resolve the issue.
"The EU Commission needs to communicate quick. Are we going to be able to trade CERs, even over the counter?" another trader said.
Barclays Capital analyst Trevor Sikorski doubted how much the Commission could do as it cannot stop the CER sellers.
"For me, this is more for exchanges to police now. If they aren't able to, you will see a movement off the exchange as people police it through their own documentation," he told Reuters.
(Reporting by Nina Chestney; Editing by Amanda Cooper)
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