CEZ announced that it realized first deals on Amsterdam’s ECX bourse of carbon dioxide allowances. Head of sales, Alan Svoboda stated that CEZ he expects CEZ to have enough CO2 allowances this year. However, Svoboda expects CEZ to lack allowances next year because of full output of coal burning power plants due to expected shutdowns in Slovakia and higher demand for electricity. CEZ will have to buy CO2 credits or to get them from JI/CDM projects (a company investing into CO2 emissions reduction in countries outside EU, which signed the Kyoto protocol receives CO2 allowances). Note that price of allowances range between EUR20-23 per ton and form significant part of electricity price. This information was already known and we believe it is neutral and should not have any impact on today’s trading. We reiterate our Buy recommendation.