The Hindu Business Line : Carbon credits futures surge over 2% on NCDEX

NEW DELHI: Carbon credit prices surged over two per cent on the domestic futures market, taking cues from global market. At 1300 hours, December delivery of carbon credits, traded as carbon emission reduction (CER), stood at Rs 1,269 per CER on NCDEX co unter, up over 2 per cent from previous day.

"Carbon credit futures are up tracking strong international market. On European Climate Exchange, they made a brisk rally due to rebound in crude oil prices,'' Karvy Comtrade Analyst Bhavana Glory told PTI.

Last fortnight, crude oil futures had touched as high as $135 per barrel, he said. In the early trade today, July delivery of crude oil on New York Mercantile Exchange (NYMEX) was marginally down at $127.47 per barrel.

Futures prices of carbon credits that touched all-time high of Rs 1,283 per CER on May 27, began to slip due to a fall in crude oil prices. Experts, however, said that though the energy prices are seen indecisive mode, prices of CER might actually be sli ghtly lower in the coming days.

CER are carbon credits issued by the Clean Development Mechanism (CDM) executive board for emission reductions achieved by CDM projects and verified under the rules of the Kyoto Protocol. Totally, 295 Indian companies are registered with CDM for carbon credit trading. - PTI

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