In the news: Reutters is reporting that the EU's carbon dioxide trading program is expected to trade over 200 million tonnes of CO2 for the year.
Some highlights from the story:
The EU launched the emissions trading scheme in January as part of its drive to curb heat-trapping greenhouse gas pollution which is blamed for causing climate change.
A small amount of trade took place in 2003 and 2004 as companies prepared for the scheme's launch. Volumes in 2004 are estimated at just 16 million tonnes.
Carbon prices have trebled since the start of the year, standing at 22 euros [$26.70 US] a ton on Friday.
Analysts say they have been driven upwards partly by tougher-than-expected pollution limits imposed by Brussels on several countries and a drought in Spain which forced utilities to burn polluting coal as clean hydropower supplies dried up.
- Main traders in the market include utilities, oil and gas companies as well as financial institutions -- banks and investment funds -- which deal on their own account and on behalf of customers.
- "(Financial institutions') volumes may be nearly as large as the energy company volumes. These players were among the first to enter the trading market," the report said.
I love the smell of markets in the morning.
