Emissions Trading / Carbon Market News (2017-10-30)

Dear Ladies and Gentlemen,

The Certified Emission Reductions (CER) marked a new all-time-low at 16 Cent. It seems to be a bad time for project developers in Clean Development Mechanism (CDM) to look for earnings from CERs, which would be higher than the costs of generating these units. If this mechanism could be attractive in the future for investors is written in the stars. Maybe the upcoming climate change conference could set a new impulse.

Despite raising crude oil prices last week, the European Emission Allowances EUA lost 50 Cent against the week before. After the strong price increase of the last months, the time for consolidation was ready. The next days will show, if EUA will stay above the psychological important level of seven Euro per unit. The colder weather in Europe could support the energy complex in that matter.

 

(Average Quotes Exchange / OTC)
Instrument 2017-10-30 2017-10-20 Change
EUA (Spotmarket) 7.17 EUR 7.57 EUR -0.50 EUR
EUA (December-2017-Future) 7.17 EUR 7.57 EUR -0.50 EUR
CER (Spotmarket) 0.18 EUR 0.19 EUR -0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 60.33 USD 57.82 USD +2.51 USD
EURO (Currency, Forex) 1.1609 USD 1.1785 USD -0.0176 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.)

 

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

 

 

With kind regards,

 

Advantag Services GmbH

 

Emissions Trading / Carbon Market News (2017-10-23)

Dear Ladies and Gentlemen,

Those who after the failed trialogue negotiations gathered that the price of carbon emission certificates would loose ground was more than wrong, as the last trading week showed. On the contrary, the market participants considered this circumstance rather as a little political flaw, which is hardly noticeable in the context of the general break-up mood. Since May of this year, the market is in a sustained upward trend, which has once again increased in momentum and volatility since the beginning of September, ie immediately after the summer break.

And this also applied to the trade in the last week. It started on Monday an impressive rally that began around the price of EUR 7.30 and marked a 21-month high on Thursday with a peak of EUR 8.05. On Friday, then profit takings pulled down the price to some EUR 7.50. However, taking into account that we were still under the six-euro mark at the beginning of September, even this correction was rather moderate.

Regardless of global political as well as national developments, traders seem to be focusing on the direct market environment in the ETS, which is marked by the official start date of the market stability reserve on 1 January 2019 and the ambitious regulations from the fourth trading period.

Almost a marginal note, but still worth mentioning is the decision of the new government of the Netherlands, which has just been constituted. They are therefore planning to shut all coal-fired power plants by 2030, and will launch their own price corridor for EUAs with a minimum price of EUR 18.00 from next year. While these measures will not have a direct impact on European emissions trading, they will undoubtedly have a signal effect.

 

(Average Quotes Exchange / OTC)
Instrument 2017-10-20 2017-10-13 Change
EUA (Spotmarket) 7.57 EUR 7.32 EUR +0.25 EUR
EUA (December-2017-Future) 7.57 EUR 7.32 EUR +0.25 EUR
CER (Spotmarket) 0.19 EUR 0.19 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 57.82 USD 57.12 USD +0.70 USD
EURO (Currency, Forex) 1.1785 USD 1.1822 USD -0.0037 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.)

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

 

With kind regards,

Advantag Services GmbH

Emissions Trading / Carbon Market News (2017-10-16)

Dear Ladies and Gentlemen,

Calculations of the Environmental Ministry showed, that Germany will not reach the target of reduction of greenhouse-gases by 40% against 1990; they computed only a possible reduction of 32%. One of the main reasons are the ongoing use of coal power, which have still 43% by the German power mix despite the extension of renewable energy in Germany. That might have a coherence with the decrease of atom power.

Last Thursday, the trilogue of European Parliament, European Council and European Commission regarding the reform of the European Emissions Trading System happened. The long meeting, which 14 hours lasts, did not result in a final agreement. Especially the major point of energy production by coal power was a killing point, because Poland has not moved from his point of view by its coal based energy policy. The negotiations shall continue at unspecified point in time.

In forefront of the meeting, prices of European Carbon Emission Allowances rose up to nearby 7.60 Euro per ton and closed despite the disappointing result on weekly basis with a surplus of nearly 5%.

 

(Average Quotes Exchange / OTC)
Instrument 2017-10-13 2017-10-06 Change
EUA (Spotmarket) 7.32 EUR 6.99 EUR +0.33 EUR
EUA (December-2017-Future) 7.32 EUR 7.00 EUR +0.32 EUR
CER (Spotmarket) 0.19 EUR 0.19 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 57.12 USD 55.58 USD +1.54 USD
EURO (Currency, Forex) 1.1822 USD 1.1733 USD +0.0089 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.)

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

 

With kind regards,

Advantag Services GmbH

 

Emissions Trading / Carbon Market News (2017-10-09)

Dear Ladies and Gentlemen,

Andreas Kuhlmann from German Energy Agency, is the main initiator of a group of 15 energy experts, who require from the new elected German federal government innovative measures to encourage climate protection on a broad economic basis.

One of the central points of the proposal is a minimum price for all sectors to include for example transport sector, households or agricultures also, which are currently not included in the European Emissions Trading System. These revenues shall reduce taxes and charges and benefit the citizen by lower associated employer outlay.

This Thursday EU member states will meet for a final conference to complete the reform talks. Prior to this, the price of European Carbon Emission Allowances stays mostly stable.

 

(Average Quotes Exchange / OTC)
Instrument 2017-10-06 2017-09-29 Change
EUA (Spotmarket) 6.99 EUR 7.06 EUR -0.07 EUR
EUA (December-2017-Future) 7.00 EUR 7.07 EUR -0.07 EUR
CER (Spotmarket) 0.19 EUR 0.19 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 55.58 USD 56.69 USD -1.11 USD
EURO (Currency, Forex) 1.1733 USD 1.1814 USD -0.0081 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.)

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

 

With kind regards,

Advantag Services GmbH

Emissions Trading / Carbon Market News (2017-10-02)

Dear Ladies and Gentlemen,

The third quarter 2017 European Emission Allowances EUA closed with an increase of more than 40% against the previous quarter. Also from point of view of the first nine months, the pollution rights rose around 8%.

A important reason therefor could be the upcoming negotiations of the European Member states, which will review their position on the EU-ETS reform plans on Friday this week. Than they will discuss the proposal of cancellation of emission rights from the market stability reserve starting in 2023.

The previous proposal did not mention a cancellation, what could lead to the fact, that they could return into the market, if there was a surplus of less than 433 million units. The European Parliament also supports the cancellation of 800 million units after January 1st, 2021.

On October 12, the Trilogue negotiations with European Parliament and European Commission will be continued. The results might have – according to the tendency – influence of the short- and midterm price development.

 

(Average Quotes Exchange / OTC)
Instrument 2017-09-29 2017-09-22 Change
EUA (Spotmarket) 7.06 EUR 6.64 EUR +0.42 EUR
EUA (December-2017-Future) 7.07 EUR 6.65 EUR +0.42 EUR
CER (Spotmarket) 0.19 EUR 0.20 EUR -0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 56.69 USD 56.79 USD -0.10 USD
EURO (Currency, Forex) 1.1814 USD 1.1947 USD -0.0133 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.)

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

 

 

With kind regards,

 

Advantag Services GmbH