Isramart :EUA market auction goes live on spot market

Isramart news:
Leipzig-based European Energy Exchange (EEX) today launched primary market auctioning of European Union Emission Allowances (EUAs). EEX is running the primary auction for EUAs in Germany on behalf of the German Federal Ministry for the Environment.

A total volume of 300,000 EUA spot contracts were sold, with participants bidding more than six-fold the auction volume. A price of €12.67 ($18.23) per EUA was established. Auctioning of EUA derivatives are due to be launched on January 6.

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EEX is set to conduct two weekly auctions from January to October 2010, covering 870,000 tonnes of carbon dioxide in total. A total of 300,000 EUAs will be auctioned off on the spot market and 570,000 EUAs on the derivatives market.

In total, 41 million EUAs will be sold this year, amounting to 10% of the total volume of EUAs issued in Germany.

The German ministry agreed to auction 10% of German emission allowances annually for both 2010 and 2011.

EEX operates market platforms for trading in power, natural gas, carbon dioxide emission rights and coal.