UN Emission Traders Start Abandoning 2012 Phase on Surplus
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Interest in United Nations emission credits for 2011 and 2012 has waned after prices dropped to a two-year low and traders began to transfer positions into later years to avoid an oversupply exacerbated by the recession.
Open interest, a measure of trading positions that have not closed, dropped 8.1 percent for so-called Certified Emission Reductions for December 2011 to 69.4 million metric tons through July 20 from its peak on May 9, according to data from the ICE Futures Europe exchange in London. December 2012 interest for CERs has dropped 5.2 percent, while interest in 2011 European Union carbon permits has risen 15 percent since May 9.