Month: October 2017

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.

(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,

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%.

(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,

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.

(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