UPDATE: it’s worse than we thought, see below.

Carbon has closed below $4 a ton in a new record low while Deutsche Bank bails

From Reuters:

Deutsche Bank quits carbon market: board member

31 Jan 2013 12:42 Last updated: 31 Jan 2013 15:04

LONDON, Jan 31 (Reuters Point Carbon) – Deutsche Bank has shut its global carbon trading operations, a member of the investment bank’s board of directors said on Thursday. Source: http://www.pointcarbon.com/news/1.2162216

In addition to the price dropping to below the price of a bag of charcoal briquettes, it may have something to do with this investigation:

Deutsche Bank co-chief named in carbon tax investigation

Two board members at Deutsche Bank, including the lender’s co-chief executive, have been drawn into a police investigation into tax evasion related to the group’s carbon trading business.

Source: http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9740904/Deutsche-Bank-co-chief-named-in-carbon-tax-investigation.html

Meanwhile, carbon closed yesterday at a new record low, losing about 8% of its value yesterday.

It looks like that by the close of trading today, EUA carbon will have lost about half its value since the peak in early January.

New Zealand’s experiment in carbon trading isn’t looking good either:

NZ carbon finds new record lows amid stable supply

31 Jan 2013 09:59

BEIJING, Jan 31 (Reuters Point Carbon) – Spot permits in the New Zealand Emissions Trading Scheme (ETS) fell 6.5 percent week-on-week to close Thursday at NZ$2.45 ($2.05), the lowest weekly closing price ever recorded as fresh supply continued to find its way to the market.

Source: http://www.pointcarbon.com/news/1.2161391

UPDATE: the market has closed today, with another record loss, for a nearly 50% drop in value in January 2013.

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