CEZ: EU carbon permits dropped, erasing most of recent gains (pls check MOZ2), after the region’s regulator proposed to delay sales of 900 mln. allowances to curb an oversupply in the Europe’s carbon market. Despite the number of permits to be delayed under the strategy known as backloading is at the higher side of a range floated by the commission in July, the risk is that this time frame is over-optimistic and the 900 mln. number proposed by the commission may be subject to revision in the negotiations that will now follow. Representatives of national governments in the EU Climate Change Committee are scheduled to discuss the measure at their next meeting on Nov. 15 and may hold a vote in December. Please note, that higher CO2 prices may lead to one-off higher baseload electricity prices which would we favourable for CEZ. Nevertheless, we do not expect significantly higher CO2 prices soon as there are many opposers among EU member states.