We are mad. Under Julia Gillard’s carbon tax, we’re paying six times more than what Europeans are for each tonne of carbon dioxide emissions:
CER prices sank to a new low on Monday within touching distance of 3 euros as traders continued to offload the offsets amid plentiful supply of cheaper ERUs, which can also be used for compliance in the EU’s Emissions Trading Scheme.
The benchmark December 2012 secondary CER contract closed at 3.18 euros (A$3.80), the day’s high, but down 2 percent on Friday’s close as traders continued to unwind long positions.
In afternoon trade the U.N. offset slid to a record low of 3.08 euros.
“The feeling is that with increased ERU supply coming into the market, there’s not much reason to hold onto CERs, particularly because of oversupply in the carbon market as a whole,” said one trader, adding that 3 euros was a critically- important support level.