ICE daily CER price improved to 1.10 EURO (+10.00%). The market remains significantly long and participants seem to be pinning their hopes on supply constraint decisions which could take a long time to materialize. The European Commission has proposed back-loading 900 million EUAs from 2013, and carbon got a jolt from this news. However back-loading is not the same as removal, so trading volume remains driven by swaps and hedging; real new demand does not exist to meet continuous rolling supply growth through year end. The only thing one can say about carbon right now is it's quite cheap. But today's cheap price can become tomorrow's expensive price, as we've seen since August 2011. The market badly needs regulatory support.