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Emission permits for December 2008 in Europe fall to a week low

Permits for 2008 delivery fell 35 cents, or 2.2%, to €15.65 ($20) a metric ton, according to prices from the European Climate Exchange in Amsterdam on Bloomberg at 5:39 p.m. local time, their lowest since October 4. They've fallen 19% so far this year. Permits for December 2006 fell 5 cents to €12.45. The United Nations Clean Development Mechanism Executive Board, which oversees the creation of some Kyoto Protocol credits, issued 4.47 million certified emission reductions, or CERs, last month, according to a UN Web site. That almost matched the record month in May, when 4.5 million were issued. Emission prices can influence power prices across Europe. EU factories and power stations can use project or granted credits to comply with environmental laws designed to curb global warming. Each CER is the equivalent of a metric ton of carbon dioxide saved. A total of 16.5 million CERs were issued from 81 projects as of on Tuesday. Traders who got issued credits can lock in profit on those credits by selling EU allowances forward. (Bloomberg)