Carbon Emissions - VED Preview, Aviation Update, and Revised 2011 EUA Price Forecast


Authors
Isabelle Curien and Mark C.Lewis

Research Organisation
Deutsche Bank AG/London

Report Date
March 1, 2011

Document summary

The first verified emissions data (VED) for 2010 should be available from 12pm CET on Friday 1 April, and Deutsche Bank now expects a 2.6% increase to 1,922Mt (1,950Mt previously), owing mainly to lower emissions from the power sector than what was previously estimated. With German generators still facing very weak forward dark and spark spreads, significant hedging of their 2013 exposure in the near term is not expected. As a result, Deutsche Bank downgrades their year-end 2011 EUA price forecast to €18/t (€21/t previously) whilst keeping their forecasts for 2012 and beyond unchanged.
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