COPENHAGEN, March 13 Morgan Stanley (MS.N) and
RNK Capital have completed the first deal to trade European
Union carbon emissions permits for delivery after 2012, hinting
at growing confidence that carbon markets are here to stay.
The Kyoto Protocol on global warming has kick-started trade
in carbon emissions permits by setting rich countries limits on
their emissions of greenhouse gases, but allowing them to buy
permits from poor countries to meet these goals.
Kyoto targets expire in 2012, but recent moves for example
by the European Union to set a unilateral emissions target to
2020 is giving investors confidence that there will be long-term
demand for permits.
The EU has set up its own carbon trading scheme to help the
27-nation bloc achieve its Kyoto targets, setting emissions
limits on its heavy industry while allowing companies to trade
EU allowances (EUAs).
The next phase of the EU scheme also ends in 2012.
"This trade is a clear indication of our confidence in the
political will of European governments to continue to build on
the success of the EU emissions trading scheme," said Morgan
Stanley's Imtiaz Ahmad on Tuesday.
Evolution Markets brokered the deal, which traded 50,000
EUAs, equivalent to 50,000 tonnes of carbon dioxide emissions,
at 20.05 euros ($26.43) each, for delivery in 2013.