Emissions Trading / Carbon Market News (2017-03-21)

Dear Ladies and Gentlemen,

At the beginning of last week, the German Federal Environment Agency presented the carbon footprint report of 2016. In Germany, CO2 emissions in the past year have risen by 4 million tons compared to 2015. The environmental impact of the transport sector has grown disproportionately. Here, it is 5.4 million tons more than 2015, an increase of 3.4 percent. According to the Agency, the increase in traffic emissions is mainly due to the fact that more diesel has been fueled and that road transport has grown by 2.8 per cent. “If the traffic sector does not move quickly, we will miss our climate protection targets. The increase in efficiency of vehicles is fizzled out by traffic growth on the road, “said UBA President Maria Krautzberger. In contrast to the road, climate friendly rail freight transport in 2016 experienced a drop by 0.5 percent. According to UBA, the reason for this is the low toll rates for trucks and the low fuel prices. This led to an increase of 3.5 percent in diesel sales (petrol: plus 2 percent).

On the other hand, carbon dioxide emissions from the energy sector fell again despite a slight increase in production. For the first time since 2010 we saw again an increase in the use of low-emission natural gas, instead of other fossil fuels. Electricity generation from renewable energy sources was only slightly higher than in the previous year. The generation of wind and photovoltaic electricity even declined due to weather conditions.

The CO2 market has recorded significant losses in the past week, breaking its stable sideways movement downwards. While the auction calendar bulging with some 21.5 million fresh certificates swamped the market, the demand from companies was declining significantly. In addition, the ongoing weakness of the oil sector as well impacted the course for European pollution rights.

At a weekend meeting, the Secretary General of the OPEC implored the oil-producing countries to adhere to the output reductions despite the falling prices. “We must be patient and have a strong will to make the decisions do their work.” Responsible for this dilemma are obviously US-American companies, which flood the market with fracking oil. And the signals from the United States could not be clearer here since last Friday, the trump administration gave the OK for the Obama-stopped pipeline Keystone XL. The Keystone XL is an extension of a pipeline already operating since 2010. Over the 1.900-kilometer extension of the tube, up to 830,000 barrels (or about 132 million liters) of tar sands will be pumped daily from Calgary (Canada) to the coast of the Gulf of Mexico.


(Average Quotes Exchange / OTC)
Instrument 2017-03-24 2017-03-17 Change
EUA (Spotmarket) 4.76 EUR 5.13 EUR -0.37 EUR
EUA (December-2017-Future) 4.77 EUR 5.14 EUR -0.37 EUR
CER (Spotmarket) 0.26 EUR 0.28 EUR -0.02 EUR
ICE Brent Crude Oil (Benchmark Future) 50.98 USD 51.74 USD -0.76 USD
EURO (Currency, Forex) 1.0808 USD 1.0754 USD +0.0054 USD

(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.)

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With kind regards,


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