Carbon Offsets Daily » Market Summary

MF Global Weekly CDM & VER Market Summary 19th – 25th October 2009

Gareth Turner — Mon, 26 Oct 2009 17:55:50 +0000

Voluntary trading activity strengthened on the week with market participants looking to fill end of year positions. Demand is focusing on charismatic pre-CDM RE VCU credits from South America, South East Asia and Africa currently $4/5.50 bid/offered. Standard Issued Indian RE pre-CDM VCUs continue to transact at $3.75

MF Global Weekly CDM & VER Commentary 5th – 11th October 2009

Gareth Turner — Mon, 12 Oct 2009 03:52:55 +0000

Signs of a bounce in VER demand are appearing with Chinese and Indian quality wind VCUs being sought by Buyers. Recent-vintage, pre-CDM VCUs Chinese credits are transacting at $2.75-$3.50, with Indian offsets commanding $1/$1.50 premiums. Competitive pricing has led to a temporary change of focus with participants looking to bolster portfolios at bargain levels, potentially calling the bottom of the recent dip in prices. Uncertainty over forestry projects is promoting a cautious approach from buyers on both sides of the Atlantic. Exotic credit prices are diverging with some developers raising prices to $5.50 levels, citing high development costs for in demand smaller sized VCU projects.

CRTs are still the most desirable US voluntary credit type as Buyers are confident of their acceptance into a future federal mandatory carbon scheme. Spot CRTs are $7/8 bid/ offered while Sellers of forward strips are increasingly looking for up-front payments. New methodologies such as ODS are offered forward at $5-6. Interest in US VCUs is growing as speculators, in particular, weigh-up the cost benefits of trading these over the more expensive CRTs. A recent flow of reports from the US has encouraged many bidders that VCUs will also be fungible in a future US cap and trade market. However a lack of supply is curtailing wider trading activity so far. Prices have increased and are $4/$5.50 bid/offered.

Demand for Gold Standard VERs is focusing on credits from Least Developed Countries.

MF Global Weekly CDM & VER Market Summary 28th September – 4th October 2009

Gareth Turner — Mon, 05 Oct 2009 19:43:26 +0000

VER demand remains consistent following a week of industry conferences. Higher pricing and the lack of issuance of exotic credits are promoting interest in recent vintage Indian RE VCUs currently $3.50/$4.50 bid/offered. Exotic VCUs are transacting at $1/2 premiums but are suffering from uncertainty over delivery timelines, new methodology approval and final volume size.

Gold Standard demand is improving with small clips of issued credits

MF Global Weekly CDM & VER Market Summary 21st – 27th September 2009

Gareth Turner — Tue, 29 Sep 2009 22:01:07 +0000

VER market activity continues to improve with demand growing for VCUs and Gold Standard credits weekly. Small clips of exotic Pre CDM RE VCUs continue to transact at $4/5 levels commanding a $1/2 premium to standard Chinese and Indian RE VCUs. Gold standard interest is increasing with counterparties focusing on either small clips of issued credits or non typical projects in early development. Issued credits are

MF Global Weekly CDM & VER Market Summary 14th – 20th September 2009

Gareth Turner — Wed, 23 Sep 2009 20:51:07 +0000

The US is currently dominating trading activity in the global voluntary carbon market. While the rest of world endures a slowdown, strong demand for CRTs as well as persistent volumes on CCX coupled with a growing stream of privately negotiated transactions are eclipsing activity in Europe and elsewhere.

CRTs remain highly sought after with prices varying depending on methodology type and proximity to issuance. 2009+ vintage credits are preferred with 09-13 strips the most common. A shortage of supply is causing projects to be contracted at earlier stages, nearer the bottom of the emerging $6-10 spread. Increased methodologies and locations are expected to help satisfy demand in the mid-term but shortage of supply is expected to persist for 2009.

Charismatic pre-CDM VCUs are still priced $4/5 bid/offered with cheap Chinese VCUs offered around $2 at the other end of the spectrum. Demand is still small as offset retailers watch the market. US VCUs, offered at $5.50 are still priced at a premium reflecting limited supply and increasing demand while Gold Standard credits remain on the shelf as two new Turkish projects were added to the GS Registry.

Trading on CCX was slim for the week with 215 CFIs (21,500 tonnes) transacted. CCX CFI prices were unchanged on the week, with Dec09 CFIs ending Friday’s session at $0.20. There was only one privately negotiated transaction listed on the CX this week, for 200 tonnes of 2008 vintage USA Forestry Offsets at $0.20/t, temporarily bucking the recent trend of PNT activity being greater than on-exchange.A bi-partisan panel on the Senate energy committee expressed concern over the lack of price floors and ceilings in the House Waxman-Markey cap and trade carbon bill.

MF Global Weekly CDM & VER Market Summary 7th – 13th September 2009

Gareth Turner — Mon, 14 Sep 2009 14:38:18 +0000

Voluntary trading has seen an encouraging resurgence following the return of market participants from the summer break. Increasingly bullish VER offers were the hallmark of the week with demand starting to catch up with recent vintage pre-CDM RE VCUs $3@4. Charismatic pre-CDM VCUs are $4@$5.25 bid/offered while pure and non RE VCUs are $1- $2 lower. Forestry offsets of all methodologies are receiving interest however considerable project volumes and complexity combined with delivery risk are promoting a cautious approach from buyers. Forestry credits are currently $4@$9 bid/offered. African credits remain on buyer wish lists despite a lack of issuance, $5@$10 bid/offered depending on project.

US Climate Reserve Tons are still highly sought after with demand increasing from spec players. Ag. Methane and Forestry credits remain choice, though a lack of volume and issuance is driving interest in 2009+ forward strips of LFG credits, trading around $6.50/$7.25. On exchange, the CCX CAR-CRT Futures Dec10 V09 settled at $6.75; while the CCX CAR-CRT Dec10-Dec15 vintage 09 strip settled at $6.95: both with no volume traded.

Gold Standard interest persists though the delayed issuance of African projects is pushing buyer demand towards alternative projects both from non typical locations and/or cheap issued offsets. African spot credits are

MF Global Weekly VER and CDM Market Summary 31st August – 6th September 2009

Gareth Turner — Tue, 08 Sep 2009 09:43:28 +0000

VER market activity is gently improving as the holiday season has receded. The clamour for US CAR CRTs and more recently, African VCUs is helping to grow demand. As end-users increasingly specify African-originated credits, bids are being given at unusually early stages i.e. at validation due to the demand/supply imbalance. Exotic recent-vintage RE offsets are trading at around $4/5, bid/offered with standard India and China RE offsets at $3/3.50, bid/offered.

MF Global Weekly CDM & VER Market Summary 24th – 30th August 2009

Gareth Turner — Tue, 01 Sep 2009 21:50:25 +0000

US CAR CRT demand is growing with multi-year strips within 2009

MF Global Weekly CDM & VER Market Summary 17th – 23rd August 2009

Gareth Turner — Tue, 01 Sep 2009 21:49:15 +0000

VER activity is picking up with market participants returning from the summer slowdown and the improved economic outlook in Europe driving end user demand for exotic VCUs. Interest continues to centre on non-typical project locations and methodologies with African credits and close to issuance Forestry offsets top of buyer wish lists. Recent vintage RE projects remain at $4 levels with non-RE VCUs valued at around $2.25. Exotics are commanding a $0.50/$1 premiums.

Gold Standard VERs are trading at between

MF Global Weekly CDM & VER Market Summary 10th – 16th August 2009

Gareth Turner — Tue, 18 Aug 2009 18:17:33 +0000

Trading activity in the VER market remains slim and continues to be dominated by demand for offbeat projects with non-typical locations and methodologies. Gold Standard credits are priced around

MF Gloabl Weekly VER & CER Market Summary 3rd – 9th August

Gareth Turner — Wed, 12 Aug 2009 12:35:24 +0000

The Dec09 secondary CER contract finished up

MF Global Weekly VER & CER Market Summary 27 July – 2 August 2009

Gareth Turner — Wed, 05 Aug 2009 00:24:42 +0000

Volumes on CCX improved over the previous week with 182.8kt traded and the 2007 contract being the most popular. The 2009 contract closed the week $0.05 down on the previous Friday, at $0.45. CAR OTC CRTs forwards are hovering around the $7 mark with spot trading $2-3 higher.

The Dec09 secondary CER contract lost half a Euro to close the week at

MF Global Weekly CDM & VER Markets Summary 20th – 26th July 2009

Gareth Turner — Mon, 27 Jul 2009 17:18:29 +0000

Voluntary trading has slowed during the summer period with most market participants taking annual leave. Demand remains dominated by small clips of either exotic RE or bargain priced VCUs. Issued, recent vintage, RE VCUs from SE Asia, South America and Africa are transacting at $4/5; credits from China and India are trading at $2.50/3.50 levels. American VCUs are holding steady at around $5.

Gold Standard demand has slowed as buyers hold on for interesting projects from unusual locations. Price levels remain at

MF Global Weekly CDM & VER Market Summary 13th – 19th July 2009

Gareth Turner — Tue, 21 Jul 2009 14:30:57 +0000

VER trading remains consistent with demand continuing to centre on recent vintage, issued RE VCUs. Exotic credits from SE Asia, South America and Africa are commanding $1

MF Global Weekly CDM & VER Market Summary 6th – 12th July

Gareth Turner — Mon, 13 Jul 2009 23:32:59 +0000

VER trading activity for pre-CDM credits slowed last week while the market for US-originated credits continued to build. The propsoed delays

MF Global Weekly CDM & VER Market Summary 29th June – 5th July 2009

Gareth Turner — Mon, 06 Jul 2009 21:21:54 +0000

VER trading activity intensified over the week with continued optimism buoying the market. A widening of VER credit types and of methodologies combined with the growing assumption of inclusion in the proposed US federal cap and trade scheme is driving activity in the market as evidenced by the increase of

MF Global Weekly CDM & VER Market Summary 22nd – 28th June 2009

Gareth Turner — Tue, 30 Jun 2009 17:23:27 +0000

The VER market picked up over the week with positive US legislative news leading to optimism of a global emissions trading scheme. The change in mood has seen the return of smaller participants and led to the reemergence of previously dormant market locations. Interest continues to focus on recent vintage Issued RE VCUs from SE Asia and South America trading at $4.25 levels. There is increased chatter surrounding eagerly anticipated African projects which are likely to trade at a premium. Demand for US offsets is intensifying with additional project flow weekly. Issued OTC CRTs remain $6/$7 with 5 year forward strips $5.50/$6.50 bid/offered. However on exchange the Dec 2009 CCX CAR CRT was marked lower recovering to close at $4.75 from $4.40 midweek with 40 contracts traded. The 10 year Dec 2009/2018 strip settled down $0.17 cents from the previous week at $5.39 as the market awaited news of the Waxman Markey climate change bill. US VCUs remain $4/5 bid/offered with methane projects dominating demand.

Gold Standard inertia has lifted with several orders circulating the market for non typical projects with a wide price spread of

MF Global weekly CDM & VER Market Summary 15th – 21st June 2009

Gareth Turner — Mon, 22 Jun 2009 17:23:13 +0000

VER trading activity was rampant last week with several large tenders circulating the market. Increased pressure on pricing due to an oversupply of projects drove the value of recent vintage issued Chinese and Indian RE VCUs to sub $3 levels, with non RE credits trading at sub $2. Exotic non-US RE VCUs are holding at around $4.25. Demand for all types of US credits continues to expand. US VCS and CAR CRT offsets are being eyed for pre compliance with 5 year forward strips of methane projects dominating buyer mandates. Issued OTC CRTs are $6/$7 with forward strips $5.50/$6.50 bid/offered. The Dec 2009 CCX traded CRT contract settled at $5.05 Friday down from $5.90 last week.

MF Global Weekly CDM & VER Market Summary 1st – 7th June 2009

Gareth Turner — Tue, 09 Jun 2009 21:01:39 +0000

VER market activity has constricted with prices of recent vintage non-US RE VCUs trading down at around $4.50. Demand for both VCS & Gold Standard credits remains focused on non typical locations and methodologies with Gold standard price levels stagnant at

MF Global Weekly CDM & VER Market Summary 25th – 31st May 2009

Gareth Turner — Mon, 01 Jun 2009 20:56:22 +0000

The VER market had a quiet week as the majority of participants attended Carbon Expo in Barcelona. Demand and pricing therefore remained static with exotic, recent vintage RE VCUs holding at around $5.25. Conversely, US CAR CRT OTC interest is growing with new counterparties and credits appearing week after week. The CAR CRT Dec09-Dec18 strip is unmoved at $7.02 on exchange. The Gold Standard VER market is also quiet with a lack of inertia maintaining price levels at

MF Global Weekly CDM & VER Market Summary 11th – 17th May 2009

Gareth Turner — Thu, 21 May 2009 16:49:11 +0000

By Gareth Turner 17 May 2009

Activity in the VER market is expanding as locations and products diversify further. There is heightened European demand for both issued and forward bilateral CAR CRTs despite no CRTs trading on CCFE this week. The Dec09-Dec18 strip is priced at $7.01 on the Exchange. VCU interest continues to centre on exotic South American and South East Asian renewable credits, trading round a dime lower from last week at $5.15. Vintage matching is growing in prevalence with end-users demanding 2009 credits to offset 2009 emissions.

Gold Standard VER offsets remain around

MF Global Weekly CDM & VER Market Summary 3rd – 10th May 2009

Gareth Turner — Tue, 12 May 2009 15:32:16 +0000

By Gareth Turner 11 May 2009

VER pricing is holding at around the $5.25 level for recent vintage issued RE VCUs. Project location now dominates buyer demand specification in divergence to volume size, with SE Asian and South American VERs the offsets of choice. Interest in CAR CRT credits is growing despite the limited number of methodologies available, currently $7/8 bid/offered. Efficient issuance and project processing are driving positive sentiment with counterparties confident the American market will improve carbon liquidity previously hampered by EB & DOE delays.

Gold Standard interest remains inconsistent despite competitive pricing with issued credits

MF Global Weekly CDM & VER Market Summary 27th April – 3rd May 2009

Gareth Turner — Fri, 08 May 2009 15:57:41 +0000

The Dec 09 secondary CER contract closed the week down by around