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CARBON MARKETS NEWSLETTER

26 AUGUST 2014

MARKET SUMMARY

EMISSIONS PRICE IS STABLE IN THE RANGE BETWEEN 6.25 AND 6.50 Emissions price remained on high levels during last week. Continuing the previous bullish trend, EUA Dec14 reached the highest

price since March 2014. Closely after opening the Wednesday session it spiked to 6.51 and then slipped on profit taking. After

breaking the resistance level at 6.27 the uptrend seemed to be speculative and based on technical bullish indicators. Energy

spreads were narrow, auctions werent cleared above spot, but nevertheless we saw a new high on the market. From this point

of view the pull back is natural. Current technical indicators are showing a trend reversal. Market fell to a new low at 6.25 and

wasnt able to reach a new high above 6.51. If the price gets down to 6.24 from current level, a strong trend reversal pattern

will come in sight.

German Electricity contract

Cal15 has slightly recovered

from the fall on previous Mon-

day session. Currently the con-

tract is traded at 35.65 /

MWh. UK gas NBP Dec14 is at

62.38 p/therm. Coal API2 front

year contract is flat comparing

to the previous week and cur-

rently is quoted at 79.60 $/t.

PRICE DRIVERS

EUAs dec14 traded on

26.08.2014 at 10:00

at 6.29/t

CERs dec14 are at 0.17/t

Our outlook for this week is

neutral or even slightly nega-

tive. After very bearish devel-

opment in energy spreads,

they picked up a little during

the last week and on Monday

session. We also base our

view on trend reversal chart

pattern and on results of

Monday auction which

cleared at least 4 cents below

the spot.

HIGHLIGHTS OF THE WEEK