(Montel Powernews) – “I do not believe that the CER import quota for the EU ETS can be fully exploited as the total CDM projects will not generate enough CERs to satisfy demand both from Europe and non-ETS countries such as Japan,” he told Montel Powernnews at the sidelines of the conference on Thursday.

In his view, liquid CER trading will start as soon as the international transaction log (ITL) is operational and industrial players start to cover their compliance targets with CERs.

“Currently, given that CER prices are at a discount of up to 35 per cent compared to EUAs, companies have an opportunity to cover their shortfalls cheaply,” he suggested.

As soon as more industrial players start importing CERs, the price spread will narrow, with the EUA price remaining above EUR 25.00/t, Huettner believes.

Anja Karl

Prague, 7 June 2007