23 June 2003 – GT Energy announced today that it had brokered the second public C02 emissions trade – the first trade under the EU emissions trading scheme (EU ETS) between two European utilities.
The price and volume of the transaction were within market expectations, according to a press release from GT Energy. Point Carbon’s Carbon Market Europe index has regularly reported the bid-offer spread in the market at €5-7 per tonne of CO2.
” The first EU trade between Nuon and Shell put the EU ETS in the minds of many Finance Directors, Traders and Environmental Officers. This trade has firmly put the EU ETS on the map,” said Moe Moe Oo, Global Head of Carbon at London based Environmental Brokers, GT Energy.
“Companies who have challenging targets are not afraid to show firm bids in the market. Finding firm offers has been difficult without the National Allocation Plans being presented to the European Commission. However, some forward thinking companies who have confidence in their emission reduction strategies are much closer to showing firm offers and this trade could lead to the floodgates opening,” Oo added.
Point Carbon analyst Atle Christiansen said that this trade, the second public trade under the EU ETS, sends an important signal. ” It is more important to establish the final rules of the system. Hopefully the EU Parliament, Council and Commission will get that sorted out in following the Parliament plenary vote in July,” he said.
The parties to the trade have chosen not to publish any firm information about the trade at the time being, but may issue their own press releases within a couple of weeks.