Emissions Trading / Carbon Market News (2018-03-26)

Dear Sir or Madam,

If we talked about a new seven-year high at EUR 11.50 in our last market news, we now have to report that actually already the 13-euro mark has been tested. After that, although it came to profit taking, the price has since found a level around the mark of 12.50 EUR.

Of course, looking at the details of this development, it is easy to conclude that the market is dominated by speculative traders who clearly bet on significantly rising prices. The bullish attitude was further fueled last week by news from European politics. For example, the International Energy Agency announced that global energy-related CO2 emissions rose again in 2017 for the first time after a three-year break. Strong economic growth boosted the use of fossil fuels, while energy efficiency measures seemed unpopular.

However, one of the decisive political statements with price-supporting effects was the statement from Great Britain that despite Brexit the cap-and-trade system will be favourably disposed and that the country will remain in the ETS at least until the end of the trading period.

French President Emmanuel Macron has also signaled on Thursday that he will continue to push for an EU carbon price floor, which also includes a border tariff for countries, that did not sign the Paris contract, despite the still very limited support that both ideas have so far from European partners.

Against this background, the auctions were literally stormed last week. However, many bidders did not make the move, which put significant pressure on the spot market. As a result, we saw sales of well over 30 million allowances a day and extreme price jumps.

The oil market also received a significant boost in the past week due to political news. The increase in prices was fueled by investors’ concern about a harsher US action against the big producing country and OPEC member Iran. On Friday had become known that US President Donald Trump will replace his previous security adviser McMaster by John Bolton, which brings a similar attitude with into the White House.

 

(Average Quotes Exchange / OTC)
Instrument 2018-03-23 2018-03-16 Change
EUA (Spotmarket) 12.58 EUR 11.15 EUR +1.43 EUR
EUA (December-2018-Future) 11.61 EUR 11.17 EUR +1.44 EUR
CER (Spotmarket) 0.20 EUR 0.19 EUR +0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 69.71 USD 66.13 USD +3.58 USD
EURO (Currency, Forex) 1.2357 USD 1.2289 USD +0.0068 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 has 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. This 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

 

 

 

 

 

 

 

———————————-

Advantag Services GmbH

Glockengasse 5

47608 Geldern

———————————-

Tel.: +49(0)2831.13482-20

Fax:  +49(0)2831.13482-21

Mail: info@advantag.de

Web:  www.advantag.de

———————————-

Comp. Register     12470

Tax Number         113/5701/2175

USt.-ID/VAT        DE292139472

———————————-

Managing Director:

Raik Oliver Heinzelmann

————————————————————————————–

This e-mail and any attachments are confidential and may also be privileged. If you are not the named recipient, please notify the sender immediately and do not disclose the contents to another person, use it for any purpose, or store or copy the information in any medium. This Email contains no advice for buying or selling carbon credits or their derivatives. In the event of any technical difficulty with this Email, please contact the sender.

————————————————————————————–

P  Please consider environment before printing this email and safe on every page 200 ml drinkable water, two gram CO² and two gram wood.

 

 

Emissions Trading / Carbon Market News (2018-03-19)

Dear Sir or Madam,

The dream of a largely self-sufficient home is becoming reality for more and more homeowners in Germany or for many in plannable proximity, because in Germany, the number of private or commercial solar energy storage increases significantly. In 2017, around 30,000 new solar energy storage units were added; currently about 85,000 units are in operation.

According to the German Energy Storage Association (BVES), these have now reached a total storage capacity of 700 megawatts, which corresponds to almost 10% of the German electricity storage capacity (7,370 megawatts). These are currently still largely based (6,360 megawatts) on pumped storage plants. As a precautionary measure, approximately 6,000,000 German citizens could use the solar energy storage systems to buffer their annual electricity requirements.

Some of these storage batteries come from electric cars, which are taken after a reduction in storage capacity to about 75% and now have a “second life”.

Ultimately, this poses a growing challenge to the energy industry, as it must ensure grid stability and compensate for the loss of private and commercial customer revenues.

The market for European CO2 emission allowances saw a new seven-year high at EUR 11.50 per EUA last week, before prices fell as a result of profit taking, but closed well above the EUR 11 mark at the end of the trading week,

With the significant bullish trend now lasting a quarter of a year, it would not be surprising if profit taking could trigger a correction. On the other hand, not all companies have yet met their need for allowances before the end of the current submission deadline on April 30, 2018, so it remains to be seen when consolidation could take place.

The development of the demand for the auctions this week could therefore be very interesting.

 

(Average Quotes Exchange / OTC)
Instrument 2018-03-16 2018-03-09 Change
EUA (Spotmarket) 11.15 EUR 11.05 EUR +0.10 EUR
EUA (December-2018-Future) 11.17 EUR 11.12 EUR +0.05 EUR
CER (Spotmarket) 0.19 EUR 0.19 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 66.13 USD 65.25 USD +0.88 USD
EURO (Currency, Forex) 1.2289 USD 1.2306 USD -0.0017 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 has 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. This 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 (2018-03-12)

Dear Sir or Madam,

Fourteen EU environment ministers have joined as members of the so-called “Green Growth Group” to promote the climate-friendly design of the next EU budget. Accordingly, the EU subsidy policy and structure should be in line with the objectives of the Paris Agreement on Climate Change. At the beginning of May, the legislative proposal for the EU budget for the period 2019-2030 should be submitted.

And the financial sector should also play its part. According to the plans of the European Commission, new regulations are planned, which should explicitly promote green investments under the label “Green Finance”. Asset managers and institutional investors should therefore be brought to more climate protection and sustainability.

“The Trend is your Friend,” all stockbrokers know, and stock market psychology is sometimes more important than chart analysis and fundamental data. Currently, the EU emission rights trend is still bullish, which can be seen in nearly 10% higher prices for European allowances in the past week alone. Since the beginning of the year, the EEA has gained two euros or 22%. A year ago, prices were still at 5.22 euros per tonne and have since recorded a whopping 112% growth. Today’s Monday also starts with a plus of just under 2%.

 

(Average Quotes Exchange / OTC)
Instrument 2018-03-09 2018-03-02 Change
EUA (Spotmarket) 11.05 EUR 10.10 EUR +0.95 EUR
EUA (December-2018-Future) 11.12 EUR 10.14 EUR +0.98 EUR
CER (Spotmarket) 0.19 EUR 0.18 EUR +0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 65.25 USD 64.43 USD +0.82 USD
EURO (Currency, Forex) 1.2306 USD 1.2317 USD -0.0011 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 has 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. This 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 (2018-03-05)

Dear Sir or Madam,

a truly interesting week is behind us. The clearer than expected positive membership decision of the German socialist party SPD regarding a renewed grand coalition now paves the way for another chancellorship for Angela Merkel.

This will continue a government that has not used sufficient control procedures to detect tampering manipulations. At the same time, the government has not taken adequate measures to reconcile urban air pollution with EU standards in force since 2010. Vehicles with diesel internal combustion engines can now partially banned from German city centers. The mayors of the affected cities are forced to use them as a last resort, but this will hardly be possible without a blue badge, even if the Berlin politicians are currently reluctant to do so.

The urgent need to take global steps to limit the use of fossil fuels is shown by a recent study by Chinese scientists. They have found that the oceans have never been as warm as last year. The amount of energy that led to an increase in temperature compared to 2016 was 600 times the total Chinese electricity production in 2016. Climatologists worldwide will now incorporate this data into their models, and probably as a result, global warming will progress faster than theirs Worse-case scenarios feared.

Last Tuesday, the final vote was taken on the reform of EU emissions trading. As expected, this has now been decided by the EU member states. Only Poland, Hungary and Croatia did not vote in favor. In terms of content, the European greenhouse gas reduction target for 2030 has been set at 40%, which is to be achieved by an annual emission reduction factor of 2.2%. At the same time, the market stability reserve was introduced from next year, which aims to reduce the surplus certificate volumes.

The EU ETS market took this on Tuesday as an occasion to close for the first time in more than six years on a daily basis in the double-digit range. Also on a weekly basis, the EUA could increase more than three percent, which now also led to a weekly closing price of 10.10 euros per tonne of carbon dioxide.

 

(Average Quotes Exchange / OTC)
Instrument 2018-03-02 2018-02-23 Change
EUA (Spotmarket) 10.10 EUR 9.77 EUR +0.33 EUR
EUA (December-2018-Future) 10.14 EUR 9.81 EUR +0.33 EUR
CER (Spotmarket) 0.18 EUR 0.18 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 64.43 USD 67.02 USD -2.59 USD
EURO (Currency, Forex) 1.2317 USD 1.2294 USD +0.0023 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 has 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. This 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