Price of UN Carbon Offsets in freefall

ERUs and CERs closed down again overnight, a straight decline over the last five trading sessions. The sharpest fall occurred over our long weekend, when prices settled back some 30% but Point Carbon reports that CER front year contracts traded overnight as low as 76 euro cents, and ERUs down as low as 55 euro cents, before recovering somewhat.

CERs and ERUs have now fallen 80% or more just in the last 4 months and are now trading at prices of roughly 5% of the levels seen in mid-2011. Obviously at the levels above, NZ has an effective current carbon price of about $1 - or 50 cents with the two for one. It's not just the foresters who are subdued by this - most emitters with a carbon trading function will now be suffering terribly in any mark-to-market.

Source: Carbon Match

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