png carbon projects on knife's edge..., page-7

Hi TheLorax,

Spot on IMO! However USD$1.50 seems very low. Can you please provide me with the source?

When I spoke with Ian Clarkson I got the impression that he was more concerned about the current price of VCS credits than achieving VCS accreditation. His response however was that these prices would soon improve along with the rest of the economy.

"Fears of a sell-off in the EU carbon market in early March have not yet materialised, leading analysts to offer more optimistic assessments of the strength of the emissions market in 2010. Some forecast that EUA prices would be driven down from late February as most 2010 EUA permit allocations were handed out by European governments.

The annual allocations add to EUA supply in an already oversupplied market still suffering from recession. It was thought industrial firms might take the opportunity to sell surplus holdings of permits and, while that still may happen, traders report there has been no rush to sell seen on the market as yet.

Benchmark carbon prices remained well above the 12 mark in the first days of March; December 2010 EUA futures closed at 13.30 on the European Climate Exchange on March 2 and the EUA spot price finished at 13.12 on the BlueNext exchange. After recovering to 15 in the last quarter of 2009, prices had slipped back to the 12 to 13 range since December following the disappointing outcomes of the UNs Copenhagen climate conference."

Source: http://www.carbonpositive.net/viewarticle.aspx?articleID=1903 (3rd March 2010)

In summary, the main problem (as with many traded commodities) is that, given the current economic environment, supply well exceeds demand. To counter act this problem let's hope that m2m is working hard to secure buyers. BTW - Ian is off to China this week!

:)