Month: August 2017

Dear Ladies and Gentlemen,

On 1 August, with the start of the annually recurring phase with halved EUA auction volumes, the price level for EUAs was at EUR 5.25. In today’s early trading, a few days before the end of this month, the market reached a peak of EUR 6.19, i.e. almost one euro more. This tremendous price increase is, of course, not based only on the reduced sales volumes, but was supported by a generally positive market environment and particularly by the strong energy sector. An exception, however, was the oil price, which otherwise often has been a benchmark for the carbon market. Although showing some strong volatility in August, it remained at an average price level of around 52.00 USD.
In any case, it can already be said that the market for European pollution rights has not seen a comparable strong August during the entire third trading period and therefore we can wait in suspense for the price developments in September.

In the public discussion on diesel problems, one result of the so-called Diesel Summit has so far received little attention, namely the establishment of four expert groups, which are to analyze individual areas of the problem in a quick timely sequence and to elaborate policy proposals. One such special theme is, for example, the sector of ??public vehicle fleets, which is very important for the environmental pollution in inner cities. It is obvious that buses and taxis, which are not only occasional in the city centers, produce a significant part of the emissions, and it is hoped that the planned timetable until the end of October will actually produce real results that may even show the way for other sectors.

(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask have usually in Spot Market a visible spread. CER CP1 and ERU are eligible in ETS until end of March 2015 and must be swapped into EUA. Crude Oil and Euro Currency shows day-end-exchange quotes. These market information has just an informational character and are no advice or offer to trade carbon emission rights or their futures and options. If you want to unsubscribe, please reply to this mail.)

Please call our international carbon desk if any further questions exist: +49.2831.1348220 or +44.20.79790283.

With kind regards,

Advantag Services GmbH

Dear Ladies and Gentlemen,

The German car manufacturers are still telling the faerie tale from the environmental-friendly combustion engine and talking about the clean diesel engine. In that context one can read abstruse computations to outline electric vehicles as bad for the climate, especially regarding the production of the batteries.

Hereby they ignore the fact, that the production of a combustion engine, which has partially more than 1,000 parts of aluminium and other metals, needs significantly more raw materials, than an electric engine with 99% less parts. The production of a car with combustion engine has a carbon footprint between around 4 and 7.5 tons.

The easiest way is to compare two equal cars, the Smart for example. The production of that car with combustion engine emits 4.3 tons of carbon dioxide, the production of the electric Smart has an output of 5.2 tons (Source: life cycle assessment, Prof. Dr. Eckhard Helmes, Prof. Dr. Oliver Turk and others).

The model with combustion engine and a mileage of 100,000 Kilometre has a carbon footprint of around 20 tons, the green-electricity powered Smart emits in the same time 6 tons, which is 70% less. Of course, the source of power is very important, but also with the average of the German power mix, the electric Smart would have a carbon footprint of 14 tons, what is almost 30% less than the combustion car.

The significant global increase of electric cars – especially in Asia and America – needs more of lithium. That´s, why Bolivia invests millions in the production of the “white Gold”. Bolivia intents to produce a yearly output of 30,000 tons of lithium carbonate, which costs currently 13,000 USD per ton. At the moment, the world market leader in lithium, Chile, has reserves of 7.5 million tons. Bolivia has estimated 9 million tons in reserve. That will ensure the production of batteries for electric vehicles for many years and lead to a significant emission reduced transport sector.

A minimum quote, as German chancellor candidate Martin Schulz claims, is the wrong signal. Subsidies, which are well known by diesel fuel, are unrewarding and belongs to antiquated concepts. It´s much more reasonable to cut the diesel subsidies and use that money to invest into the charging infrastructure, because the electric vehicles are getting better and cheaper and own enough advantages to convince the market.

The European market of carbon emissions was pillowed by the still reduced auction volume and the higher percentage demand. That has led to a moderate increase of four Cent to 5.34 Euro per ton.

(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask have usually in Spot Market a visible spread. CER CP1 and ERU are eligible in ETS until end of March 2015 and must be swapped into EUA. Crude Oil and Euro Currency shows day-end-exchange quotes. These market information has just an informational character and are no advice or offer to trade carbon emission rights or their futures and options. If you want to unsubscribe, please reply to this mail.)

Please call our international carbon desk if any further questions exist: +49.2831.1348220 or +44.20.79790283.

With kind regards,

Advantag Services GmbH

Dear Ladies and Gentlemen,

Last week, a small, but nevertheless historical piece of news came from the carbon market. During the first year’s summer auction with a halved auction volume, a trader set an expensive record last Tuesday. With his bid of 5.60 EUR he had given the highest bid of the day. As far as nothing historical. However, he bid for the entire auction volume and this combination led to the fatal result that he was the only one to win the bid and thus had bought 2,131,500 EUAs at a price 34 cents higher than he could have done on the spot market.

The price for the December future then automatically rose, but only up to 5.38 EUR. The traders had understood the situation quickly, of course, and the technical rise in prices then also quickly reverted. Apart from this presumed unintentional spectacular deal, the carbon market in the past week was typical for the summer period with low sales and low volatility.

A small, but in this case absolutely not historical piece of news was reported from the so-called “Diesel summit”. But is there anything at all to report? Was the result not already fixed in advance? If we look at this result in relation to the efforts, we see below the line nothing than a very negative carbon footprint. Instead of burdening the environment for the trips to Berlin, the result could have been achieved much more simply and inexpensively. For example: The German Environmental Minister Barbara Hendricks writes a strongly-worded e-mail to the Minister of Transport Alexander Dobrindt. He reads the mail, but then writes its own version to the car-makers. Unfortunately, his e-mail accidentally lands in the spam folder. The car makers send instead the already prepared note to the media. The result would have been the same, but nobody would have to drive a single kilometer, nor had been wasted a single piece of paper.

(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask have usually in Spot Market a visible spread. CER CP1 and ERU are eligible in ETS until end of March 2015 and must be swapped into EUA. Crude Oil and Euro Currency shows day-end-exchange quotes. These market information has just an informational character and are no advice or offer to trade carbon emission rights or their futures and options. If you want to unsubscribe, please reply to this mail.)

Please call our international carbon desk if any further questions exist: +49.2831.1348220 or +44.20.79790283.

With kind regards,

Advantag Services GmbH