EU carbon rises, German power supports
LONDON (Reuters) - European Union carbon emissions futures rose on Wednesday, supported by German power prices, but have not yet clawed back all of Monday's 9 percent fall. EU Allowances for December 2010 delivery were up 22 cents or 1.73 percent at 12.93 euros ($18.45) a tonne at 1349 GMT, with volume light at 2,013 lots.
Traders said EUAs were regaining some of the ground lost on Monday, when prices dropped in response to the weak outcome of the U.N. climate summit in Copenhagen.
"There seems to be a gradual recovery but industrial companies still have plenty of spare EUAs to get rid of early next year so there could be further falls then," an emissions trader said.
Players started to buy back EUAs on Tuesday as the bearish effects of the Copenhagen Accord lessened.
"The 12.40-12.60 level represented a good buying opportunity," another emissions trader said.
However, thin liquidity due to the approaching Christmas holidays would prevent much movement.
The European Climate Exchange will close at 1200 GMT on Thursday and will be shut on Friday and Monday.
German Calendar 2010 baseload power was up 30 cents or 0.68 percent at 44.55 euros per megawatt hour.
U.S. oil traded above $74 on Wednesday, buoyed by a sharp drawdown in U.S. crude stocks and an unexpected fall in gasoline inventories, but held in check by a firmer dollar.
Bulgaria's new government approved on Wednesday a long-delayed revision of its 2008-12 national plan that allocates carbon permits to industries to meet European Union requirements and sent to Brussels for approval.
Bulgaria, the only EU member state without an approved plan, hopes to get Brussels' nod in two months and distribute 42.4 million tonnes of EUAs a year to 132 installations, Environment Minister Nona Karadzhova said.
U.N.-backed certified emissions reductions were up 14 cents or 1.26 percent at 11.29 euros a tonne.
Camco International Ltd completed a 2.5 million tonne CER transaction for 6 million euros net proceeds on Wednesday, the project developer said.
(Reporting by Nina Chestney; Editing by xxx)