Emissions Trading / Carbon Market News (2017-11-27)

Dear Ladies and Gentlemen,

The urgently needed reform of the EU Emissions Trading System (EU-ETS) has cleared a further hurdle. The constant representatives of the EU member states /COREPER) ratified the reform plans of the EU-ETS as expected with towering majority. Solely Poland, Hungary and Croatia did not vote to adopt the reform plans.

Now it is anticipated, that the European Council and the European Parliament will vote also positive shortly, what could happen this week. Until middle of December, the plenary session should pave the way for the realization as well.

At the beginning of the last trading week, the failed coalition talks in Germany strained the emissions trading market firstly, but regained after upcoming news about the British backing of the EU-ETS reform.

While energy market prices are rising, the EU-Emission Allowances rose nearly 4% against the final quotation of the week before and ended last week at 7.77 Euro per EUA.

 

(Average Quotes Exchange / OTC)
Instrument 2017-11-24 2017-11-17 Change
EUA (Spotmarket) 7.77 EUR 7.40 EUR +0.29 EUR
EUA (December-2017-Future) 7.77 EUR 7.40 EUR +0.29 EUR
CER (Spotmarket) 0.17 EUR 0.17 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 63.42 USD 63.61 USD +0.73 USD
EURO (Currency, Forex) 1.1930 USD 1.1664 USD +0.0136 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 (2017-11-20)

Dear Ladies and Gentlemen,

Close to the end of the world climate conference in Bonn, Great Britain and Canada initiated a voluntary covenant of 18 nations to start waiving coal power, including our neighbouring country France. Germany, which has led the renewable power movement sooner, justifies their dependency from coal power, what makes it impossible to reach the self-made climate protection targets.

Apart from that, there was no other big things, albeit the basics of proving the goal achievements of the national reduction targets became discussed. They will be undersigned next year in Poland.

In Germany, last night failed the coalition negotiations, because the liberal party FDP became aware of irreconcilable differences on too many points after four weeks of discussions. Since social party SPD still don’t want to take further responsibility to govern, there are only two possibilities left, namely new elections or a minority government, which contains the risk of standstill for important political intensions. Anyhow, the failure of the negotiations will impair the position of chancellor Angela Merkel. The upcoming weeks will become worthwhile, even when instant needed political renewals will be paused.

The quotes of European carbon emission allowances became slightly better against the week before and closed at 7.48 Euro.

 

(Average Quotes Exchange / OTC)
Instrument 2017-11-10 2017-11-10 Change
EUA (Spotmarket) 7.48 EUR 7.40 EUR +0.08 EUR
EUA (December-2017-Future) 7.48 EUR 7.40 EUR +0.08 EUR
CER (Spotmarket) 0.17 EUR 0.17 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 62.69 USD 63.61 USD -0.92 USD
EURO (Currency, Forex) 1.1794 USD 1.1664 USD +0.0130 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 (2017-11-13)

Dear Ladies and Gentlemen,

Last Sunday was halftime at the 23rd Conference Of Parties (COP23) and at the beginning of last week, the first reasonable results have been adopted. Among others initiated Germany the worldwide biggest forestation of to protect the climate. Until 2020 shall be 150 million hectare wood reforested, until 350 million hectare to change carbon dioxide into oxygen by photosynthesis of the trees.

Now, since Syria also signs the Paris climate agreement, solely the USA is isolated in that matter. But the former Gouverneur of California, Arnold Schwarzenegger, underlined in his role as representative of a network of important US-states and cities, that they will follow the way of fighting climate change ambitious. Schwarzenegger provides in his age of 70 still a huge energy to put his targets into practice. Together with former US-presidential candidate Al Gore, they showed, that is no way into future without renewable energy and emission free transport sector.

On Wednesday the final points of the reform of the European emissions trading system became defined. From 2021 on, the yearly reduction of emission allowances will be reduced by 2.2% after current 1,74%. This will reduce the yearly total volume by 48 million certificates. In 2021 the cap will reduce 1.8 billion allowances and at the end of trading period four, the cap sill be reduced by 1.3 billion certificates. That means, that EU-ETS compliance companies have the allowance to emit 1.3 billion tons of carbon emission or equivalents maximum. Also the carbon leakage rules became new defined to prevent the movement of companies out of the EU. Furthermore funds for innovation and modernisation was decided. They will get financed by a total of 710 million emission allowances. The earnings of these allowances will be paid to member states and companies for investments into climate protection measures.

The market reacts, as market does on these foreseeable results, after it became certainty. Speculative position was closed by profit taking. After the increase of the previous week of 10%, the EUA lost 6% on weekly basis.

 

(Average Quotes Exchange / OTC)
Instrument 2017-11-10 2017-11-03 Change
EUA (Spotmarket) 7.40 EUR 7.88 EUR -0.48 EUR
EUA (December-2017-Future) 7.40 EUR 7.88 EUR -0.48 EUR
CER (Spotmarket) 0.17 EUR 0.17 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 63.61 USD 62.18 USD +1.43 USD
EURO (Currency, Forex) 1.1664 USD 1.1608 USD +0.0056 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 (2017-11-06)

Dear Ladies and Gentlemen,

Today begins the World Climate Conference COP23 in Bonn, where it will take place for the island nation Fiji. There will be expected 25,000 participants from 200 countries. One of the targets of the conference is to find ways to comply with the Paris Climate Agreement from 2015.

That it will be a hard way is not only caused by ignoramuses like US-President Donald Trump. Also Germany, which proclaimed to play a leading role for climate protection in the past, will fail to reach the goal to reduce greenhouse gas emissions by 40% against 1997. Only 32% seems to be realistic on current calculations.

And this has multiple reasons. On the one hand, the continuing economic upswing of the last years and the exit from atomic energy on the other hand are main reasons, because it will lead to a higher usage of fossil energy as brown coal. And the low prices for European carbon emission allowances make the usage of coal more economically than energy production by natural gas, what would reduce the greenhouse gas emission by one third. Not to speak about the sense of driving kids with a two tons heavy SUV with 400 HP in the kindergarten, three kilometres away.

As long as the expansion of renewable energy is not enough to supply whole Germany with clean power with continuing stability of the national electricity grid, Germany would have to import atomic energy and coal based energy from their neighbours. This would be also no sustainable way in respect of environmental protection.

Now it remains to be seen, how the other countries will show their positions, after Germanys expected miserable fail to keep the own reduction targets alive and the exit of the USA from Paris climate agreement. Countries like Poland, which produce the most of their energy by coal, hang-up the European negotiations for a better climate policy deeply and perhaps they would exit the Paris agreement too, if it would not be harmfully for the lucrative continuance in the European Union.

Wednesday this week, the negotiation regarding the future of the European Emissions Trading System will continue. In the run-up, last week prices for European Emission Allowances EUA rose strongly by 10%, supported by stronger energy.

 

(Average Quotes Exchange / OTC)
Instrument 2017-11-03 2017-10-27 Change
EUA (Spotmarket) 7.88 EUR 7.17 EUR +0.71 EUR
EUA (December-2017-Future) 7.88 EUR 7.17 EUR +0.71 EUR
CER (Spotmarket) 0.17 EUR 0.18 EUR -0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 62.18 USD 60.33 USD +1.85 USD
EURO (Currency, Forex) 1.1608 USD 1.1609 USD -0.0001 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