LONDON (Reuters) - European carbon emissions futures rose on Tuesday, boosted by German power prices, following last week’s data showing an anticipated fall in 2009 emissions in the EU’s Emissions Trading Scheme (EU ETS).
EU Allowances for December delivery were up 8 cents or 0.61 percent at 13.17 euros ($17.74) a tonne at 0656 GMT, with light volume of 780 lots traded.
Preliminary EU data last Thursday showed emissions across the scheme fell 11.2 percent, with some industrial sectors down at least 30 percent, due to the impact of recession on industry.
The figures were mainly in line with analysts’ expectations and have failed to have a bearish impact on prices, traders said.
“As the market was expecting the worst, carbon prices surged after the news (...) and will now be focusing on any economic news confirming a recovery,” an emissions trader said.
Installations are banking carbon permits through to the next phase of the EU ETS (2013-2020), which should help prices rise to around 15 euros before the summer, the trader added.
Traders said strong German power prices were supporting prices on Tuesday and that they would be watching a German spot EUA auction on Tuesday morning for any impact on prices.
German Calendar 2011 baseload power climbed 1.35 euros or 2.99 percent to 46.45 euros per megawatt hour.
Certified emissions reductions were up 8 cents or 0.69 percent at 11.60 euros a tonne, setting the EUA-CER spread at 1.57 euros.
Reporting by Nina Chestney; Editing by Amanda Cooper
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