LONDON - European Union carbon emissions futures steadied on Friday, as investors awaited an outcome from a U.N. climate summit in Copenhagen.
EU Allowances for Dec-10 delivery edged up 2 cents or 0.15 percent to 13.63 euros ($19.61) a tonne at 1549 GMT, with volume at just over 3,000 lots. EUAs traded between 13.55 and 13.88 euros a tonne on Friday.
There is some lack of direction. It's been up, then down all day, reacting to bits of news out of the summit, said an emissions trader.
EUAs fell 4.5 percent on Thursday as lack of progress toward sealing a new climate deal in Copenhagen triggered a sell-off. Prices failed to regain lost ground on Friday as world leaders tried to rescue a global climate agreement but China and the United States failed to come up with new proposals.
Traders predicted further falls if a solid deal is not thrashed out.
I'd like to think EUAs could stay above 13 euros, another trader said.
If leaders don't get anything meaningful done the market will get hit, yes. Can they risk that though? said a third trader.
The United Nations has asked world leaders to plan to stay overnight in Copenhagen because of deadlock at the summit meant to end on Friday, European Union Environment Commissioner Stavros Dimas said.
That means any impact on the market will be felt on Monday, traders said. Others said the weekend break might make market reaction less severe.
The closure of the conference on a Friday afternoon so close to Christmas will no doubt mute the impact of any final outcome on financial markets, said Meg Brown, analyst at Citigroup.
Certified emissions reductions were up 8 cents or 0.68 percent at 11.82 euros a tonne.