Dear Sir or Madam,
Last week, the German Federal Cabinet adopted uniform regulations regarding driving bans on diesel cars. This should exclude cars with hardware retrofits from the driving ban. At the same time, the Federal Cabinet decided on Thursday to amend the Federal Immission Control Act. The bill seeks to exclude diesel cars of emission standards Euro 4 and 5 from the ban, insofar as they emit nitric oxide of less than 270 milligrams per kilometer. Average Euro 5 diesel currently emits about 900 milligrams of the harmful gas per kilometer. However, Jürgen Resch from Deutsche Umwelthilfe, which initiated the lawsuit, assumes that these will also be affected from 2020 onwards, as these too sometimes exceed the limit values by a factor of 25.
Furthermore, the Federal Immission Control Act should be amended in such a way that the limit from which driving bans are issued should not come from a concentration of 40 milligrams NO2 per cubic meter of air, which in 2017 affected a total of 65 German cities, lifted up to 50 milligrams, which only 15 cities crossed. Hereby, the German legislator opposes the regulations of the EU. Whether this is permanent, future will show.
The years of sitting out of politics has now caused a new low, as now in Essen, the busy federal highway A40 is threatened by driving bans.
Naturally, the German car industry prefers to sell new cars to the drivers concerned, which makes no sense from the point of view of climate protection and resource conservation, merely promotes sales of new cars and shifts nitrogen production to other countries.
Developments in European carbon allowance prices were initially characterized by better auction demand last week, with prices breaking the € 20 mark at the start of the week and rising to € 20.65 per tonne. Afterwards, Brexit once again gave cause for annoyance. The EU and UK negotiators negotiated a Brexit treaty that was an agreement on the lowest common denominator for both sides.
However, the Prime Minister came under pressure after the resignation of ministers and further threats of resignation, with a vote of no confidence in the room. The EU has already signaled that the requested renegotiations on the part of the EU would not lead to any significant change.
At the end of last week, this put pressure on the emission allowance prices, which caused a slight drop compared to the previous week. The start of the week is also characterized by losses and it is expected that further development in the UK will have an impact on this week’s trading activity.
| (Average Quotes Exchange / OTC) | |||
| Instrument | 2018-11-09 | 2018-11-16 | Change |
| EUA (Spotmarket) | 19.45 EUR | 19.11 EUR | -0.34 EUR |
| EUA (December-2018-Future) | 19.50 EUR | 19.11 EUR | -0.39 EUR |
| CER (Spotmarket) | 0.27 EUR | 0.26 EUR | -0.01 EUR |
| ICE Brent Crude Oil (Benchmark Future) | 69.67 USD | 66.98 USD | -2.69 USD |
| EURO (Currency, Forex) | 1.1335 USD | 1.1414 USD | +0.0079 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