European Union carbon permits rose the most in more than two weeks as German power and U.K. natural gas advanced.
EU allowances for December increased 3 percent to close at 6.80 euros ($8.66) a metric ton on the ICE Futures Europe exchange in London, the biggest one-day jump since Dec. 20. United Nations Certified Emission Reduction credits for December were 3.1 percent higher at 3.71 euros a ton.
European carbon has dropped 54 percent in the past year as the region’s debt crisis weakened the region’s economy amid rising supply. The UN-overseen executive board that regulates the offset market handed out 21.5 million tons of new CERs (CERSTOTL) in the two weeks ending Jan. 6, according to data from the UN Framework Convention on Climate Change website compiled by Bloomberg.
Allowances may drop to a record low this week as the European Investment Bank reports Jan. 11 on its first sales of 2013 permits, the first year of the market’s third phase, said Bloomberg New Energy Finance.