Emissions Trading / Carbon Market News (2019-01-28)

Dear Sir or Madam,

In 2017, Germany emitted a total of 906.6 million tonnes of CO2 or its equivalents in other greenhouse gases. Thanks in part to the windy weather in 2017, the share of renewable energies was so strong that the energy sector emitted 19.5 million tons less and Germany’s total emissions of climate-damaging greenhouse gases by 4.4 million tons (0.5 %) decreased.

However, at 313 million tonnes, the energy sector is still the sector to which the greatest weight is attached in complying with German climate targets.

Now, Germany’s coal commission has recommended that the complete phase-out of coal be burned by 2038. Since the last German nuclear power plant should be shut down in 2022, this is an ambitious task, even if many environmentalists naturally take too long to do so. After all, the aim is to secure the supply of electricity, make socially compatible job losses and create new prospects for the affected regions.

Federal Minister of Economics Peter Altmaier, who was also Federal Minister for the Environment just a few years ago, knows both sides and assumes that Germany’s climate targets can be met by successive phase-out. Because by 2030, the Federal Republic wants to emit 60% less greenhouse gases compared to the reference year 1990.

However, the phase-out of coal also means that renewables must continue to be developed, the storage technologies for electricity and the power lines that guide wind energy from the north to the south of the republic. Because without coal power and nuclear energy, the main sources of renewable energy and electricity from gas-fired power plants will remain to secure their energy supply.

The costs are currently estimated at 40 billion euros. Of this, 1.3 billion will be provided annually by the federal government for the federal states and an additional 700 million euros annually to secure concrete projects. The rising electricity prices for industry and consumers will be reduced from 2023 by a subsidy to the network charges of two billion euros annually.

Ultimately, the roadmap for further decarbonisation of the German energy industry creates planning security for German industry on the one hand and on the other hand tries to implement Germany’s climate protection goals. It is a compromise, certainly. But a result without compromise on all sides would have resulted in a much worse result, namely none at all. Therefore, it is advisable to look at the work of the coal commission once from this point of view.

(Average Quotes Exchange / OTC)      
Instrument 2019-01-11 2019-01-25 Change
EUA (Spotmarket) 24.83 EUR 23.76 EUR -1.07 EUR
EUA (December-2019-Future) 24.86 EUR 23.93 EUR -0.93 EUR
CER (Spotmarket) 0.24 EUR 0.24 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 62.59 USD 61.66 USD -0.93 USD
EURO (Currency, Forex) 1.1367 USD 1.1404 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 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 (2019-01-21)

Dear Sir or Madam,

The price of oil has risen sharply during the third consecutive trading week and has rallied around 9.00 USD a barrel during this period. In addition to the hope for a change of attitude in the trade dispute between the USA and China, a clear cut in production volumes from ??the OPEC countries pushed the price significantly up. Although some analysts forecast an even stronger price increase, some factors tend to argue against it. Thus, according to the abovementioned reduction in production, the total output is still well above the demand level and at the same time the USA has reported a record output of 11.9 million barrels per day.

While In June 2016, the relatively surprising outcome of the British referendum on leaving the European Union had triggered a huge drop in emissions allowances, this topic currently no longer plays a significant role. Neither the failed vote on the Brexit deal on Tuesday, nor the failed vote on the motion of no confidence against Theresa May, had a negative effect on the price performance of the EUAs.

Instead, the icy winter temperatures and the constantly rising oil prices pushed CO2 close to the 25 euro mark. Thus, even in the current trading week, it is unlikely that the political events in London and Brussels will affect the price of pollution rights.

(Average Quotes Exchange / OTC)      
Instrument 2019-01-11 2019-01-18 Change
EUA (Spotmarket) 22.59 EUR 24.83 EUR +2.24 EUR
EUA (December-2019-Future) 22.60 EUR 24.86 EUR +2.26 EUR
CER (Spotmarket) 0.24 EUR 0.24 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 60.40 USD 62.59 USD +2.19 USD
EURO (Currency, Forex) 1.1466 USD 1.1367 USD -0.0099 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 (2018-01-14)

Dear Sir or Madam,

Since the beginning of November 2018, there has not been an auction for emission rights from German contingent at EEX, as the EU first had to confirm EEX as a platform for the auctioning of German certificates. As a result, 21,807,000 EUA less came on the market in the past year, which will now also be auctioned in the new year. At the end of last week, the Leipzig EEX was able to announce the current auction data for 2019.

Overall, Germany will auction on the EEX between 01.02.2019 and 13.12.2019 now 156,028,500 EUA. Regularly, 3,209,000 EUA from German contingents come weekly until July, taking into account the reduction of the Market Stability Reserve (MSR) for the weekly auction. The volume is halved in August and from September to mid-December the auction volume is 4,732,500 EUA.

As this was expected by most of the market participants, there was no particular reaction from the EUA course. In the past trading week, prices ranged between 21.18 and 23.26 euros per EUA; The weekly closing price was slightly lower than in the previous week and was at 22.59 Euro on the spot market, which was only one cent away from the December 2019 futures market contract.

(Average Quotes Exchange / OTC)      
Instrument 2019-01-04 2019-01-11 Change
EUA (Spotmarket) 23.49 EUR 22.59 EUR -0.90 EUR
EUA (December-2019-Future) 23.73 EUR 22.60 EUR -1.13 EUR
CER (Spotmarket) 0.24 EUR 0.24 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 57.07 USD 60.40 USD +3.53 USD
EURO (Currency, Forex) 1.1395 USD 1.1466 USD +0.0071 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 (2019-01-04)

Dear Sir or Madam,

The share of renewable energies in power generation in Germany has cracked 40% last year. On average, 40.4% of the electricity produced in Germany, equivalent to 219 terawatts, came from wind, solar, biomass, hydropower or other renewable sources. At 20.4%, wind power was the clear leader, followed by photovoltaics (8.4%) and biomass (8.3%). For the first time ever in Germany, the renewable industry has generated more electricity than the burning of coal. Brown coal was at 24.1% in 2018 and hard coal at 13.9%. Including gas (7.3%), fossil energy producers only accounted for 45% last year.

In the 49th week of 2018, 53.5% of energy production was generated by renewable energy, but the best weekly value was in the 52nd kW of 2017, where as much as 58.3% of the electricity came from renewable sources.

Since 2010, the share of renewables of 19.3% has more than doubled in Germany and it has been the network operators despite the many times in the past years predicted blackouts have always managed to keep the network stable, even if the cost has caused billions. The completion of the power lines to the south of Germany is therefore more important than ever as the proportion of renewable energies increases.

Although oil prices rose significantly in the last week due to speculation that Saudi Arabia had reduced its oil production, prices for European emission allowances (EUA) fell and closed below the € 24 mark.

This week, the auctions at the Leipzig EEX start again after the winter break. Monday, Tuesday and Thursday each want to find 2.495 million EUA customers, for a total of 7.485 million EUAs. In the following week, there are significantly more due to the Polish auction, namely 11.9135 million EUA and 640,000 emission allowances for air traffic (EUAA).

(Average Quotes Exchange / OTC)      
Instrument 2018-12-28 2019-01-04 Change
EUA (Spotmarket) 24.95 EUR 23.49 EUR -1.46 EUR
EUA (December-2019-Future) 24.98 EUR 23.73 EUR -1.25 EUR
CER (Spotmarket) 0.25 EUR 0.24 EUR -0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 53.54 USD 57.07 USD +3.53 USD
EURO (Currency, Forex) 1.1440 USD 1.1395 USD -0.0045 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.

With kind regards,

Advantag Services GmbH