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European Union Boosted By China
The benchmark contract for European Union emissions futures closed near 13 euros a tonne on Thursday, fueled by news of a U.S. commitment to emissions cuts and a Chinese pledge to reduce carbon intensity, traders said.
EU Allowances for December delivery closed 4 cents or 0.31 percent higher at 12.92 euros ($19.50) a tonne. Volume was heavy at 6,395 lots despite a U.S. Thanksgiving holiday. EUAs touched 13.22 euros in afternoon trade.
"There's a pick up in sentiment on the back of news that's broken over the last day or so," an emissions trader said.
News U.S. President Barack Obama is going to Copenhagen with an emissions reduction target lifted the market on Wednesday, and gains were extended after China committed to slow its growing emissions on Thursday.
The White House said on Wednesday the United States would pledge in Copenhagen to cut its greenhouse gas emissions roughly by 17 percent below 2005 levels by 2020, a drop of about 3 percent below the 1990 benchmark year used in U.N. treaties.
China followed with a pledge to reduce its carbon intensity by 40-45 percent by 2020, compared with 2005 levels, Xinhua news agency reported on Thursday.
U.S. oil fell toward $77 on Thursday in line with falls across financial markets and as weak demand for fuel offset potential support from a weak dollar.
German Calendar 2010 baseload power on the EEX was up 11 cents or 0.25 percent at 45.00 euros per megawatt hour.
Certified emissions reductions closed up 0.25 percent at 12.01 euros a tonne. (Reporting by Nina Chestney; Editing by James Jukwey)
