Emissions Trading / Carbon Market News (29/06/2020)

Dear Madam or Sir,

As part of the measures to overcome the Corona crisis, the German Federal Government is funding the purchase of purely electric cars with almost € 10,000, which makes the currently comparatively more expensive vehicles significantly more affordable.

The Federal Environment Agency now has a recently published study to counter critics who estimate the production and operation of an electric car to be more harmful to the climate based on old data. Even if you include all factors today, an electric car has a clear advantage over the entire life cycle. And by 2025, the carbon footprint of an electric car will again visibly decrease from 134 grams of CO2 to 101 grams of CO2, taking into account the production and usage load.

And if that is still not enough as a selling point – the Advantag fleet has been using fully electric drives since 2013 and has since reduced maintenance and maintenance costs to a fraction of vehicles with combustion engines.

Prices for CO2 emissions remained high last week, hitting a temporary high of EUR 25.75 on Wednesday before easing again at the end of the trading week.

  (Average Quotes Exchange / OTC)   
Instrument19/06/202026/06/2020Change
EUA (Spotmarket)24.09 EUR24.66 EUR+0.57 EUR
EUA (December-2020-Future)24.16 EUR24.73 EUR+0.57 EUR
CER (Spotmarket)0.31 EUR0.30 EUR-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)41.95 USD40.69 USD-1.26 USD
EURO (Currency, Forex)1.1174 USD1.1215 USD+0.0041 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

Emissions Trading / Carbon Market News (22/06/2020)

Dear Madam or Sir,

While the temperatures in Central Europe are becoming more and more summery this week, Siberia suffers from significantly too high temperatures. Already the last winter was the warmest winter in history since the beginning of the weather record of 130 years and now temperatures of well over 30 ° C are measured there, 12 ° C would be common in the area around Verkhoyansk.

This shows in particular how strong the global climate is already in a process of change. The thawing of the permafrost soils, which is associated with the high temperatures, is particularly problematic here, as a result of which enormous amounts of CO2 and methane gas escape into the atmosphere, which also increases climate change.

A little less CO2 is currently being released into the earth’s atmosphere due to the currently lower demand for crude oil. Despite lower production and increasing inventories, the price of the Brent variety rose three US dollars last week and is now well above the USD 40 mark again.

The prices for CO2 emission allowances in Europe also rose further in the past trading week and reached the pre-corona crash level with more than 24 euros.

In the new trading week, 11.6 million EUA will be auctioned at Leipzig’s EEX in just four days, significantly less than in the coming week, where 17.8 million certificates are on offer, including 810,500 pollution rights for the aviation industry.

  (Average Quotes Exchange / OTC)   
Instrument12/06/202019/06/2020Change
EUA (Spotmarket)21.93 EUR24.09 EUR+2.16 EUR
EUA (December-2020-Future)22.00 EUR24.16 EUR+2.16 EUR
CER (Spotmarket)0.31 EUR0.31 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)38.95 USD41.95 USD+3.00 USD
EURO (Currency, Forex)1.1253 USD1.1174 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.

With kind regards,

Advantag Services GmbH

Emissions Trading / Carbon Market News (15/06/2020)

Dear Madam or Sir,

As the German Federal Ministry for the Environment published last week, last year the new record of $ 282.2 billion was invested globally in the expansion of renewable energies, which corresponds to an energy production of 184 gigawatts. Of these, 118 gigawatts come from solar energy alone. More than half of the investments went to emerging and developing countries.

The global share of renewable energies in electricity generation rose by 1% compared to the previous year to 13.4% in 2019.

In the period from 2010 to 2019, Germany now ranks fourth after China, the USA and Japan. However, last year the investment volume decreased by approx. 30% compared to 2018. Renewable energies currently represent almost 80% of the newly built power generation plants in Germany. Here there was a visible slump in wind turbines, but this is offset by an increased share of solar energy.

By 2030, 87 countries have committed to invest approximately $ 1 trillion in renewable energy with a total capacity of 826 gigawatts.

The prices for European CO2 emission allowances (EEA) declined in the past week after the increase in previous weeks, as did the global financial markets.

In the new trading week, a total of almost 17 million EUA are on the calendar for auctioning at the Leipzig energy exchange EEX on all five working days.

  (Average Quotes Exchange / OTC)   
Instrument05/06/202012/06/2020Change
EUA (Spotmarket)23.13 EUR21.93 EUR-1.20 EUR
EUA (December-2020-Future)23.24 EUR22.00 EUR-1.24 EUR
CER (Spotmarket)0.32 EUR0.31 EUR-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)41.90 USD38.95 USD-2.95 USD
EURO (Currency, Forex)1.1288 USD1.1253 USD-0.0035 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

Emissions Trading / Carbon Market News (08/06/2020)

Dear Madam or Sir,

With the beginning of the easing of the global corona measures, crude oil has recovered significantly in the past weeks and by the end of the past trading week rose again above the $ 40 mark for the Brent variety. The price of fossil fuel has almost tripled since the lows in April, which is also due to the fact that the number of active oil rigs has decreased by around 65% since March.

It would be premature to see the end of the oil age due to the corona crisis, but the trend towards energy from renewable sources is strengthening. And the decision of the German government to increase the purchase premium for electric cars again by EUR 3,000.00 and not to pay a premium for vehicles with old-fashioned internal combustion engines shows that a rethink has also started in politics.

At the same time, European measures to combat the corona economic crisis have strengthened the euro, which gained almost two cents against the US dollar last week.

The price of European CO2 emissions rights also rose significantly and broke the 23 Euro mark.

In the new trading week, a total of 11.6 million EUA will be offered for auction at the Leipzig EEX in four auctions, followed by 17 million EUA in the coming week.

  (Average Quotes Exchange / OTC)   
Instrument29/05/202005/06/2020Change
EUA (Spotmarket)21.31 EUR23.13 EUR+1.82 EUR
EUA (December-2020-Future)21.40 EUR23.24 EUR+1.84 EUR
CER (Spotmarket)0.32 EUR0.32 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)37.57 USD41.90 USD+4.33 USD
EURO (Currency, Forex)1.1094 USD1.1288 USD+0.0194 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

Emissions Trading / Carbon Market News (02/06/2020)

Dear Madam or Sir,

April 2020 was the warmest April since weather records started in 1850. The scientists at “Berkeley Earth” are currently assuming that 2020 will be the warmest year so far in weather records.

At the end of last week, we also received good news from the Federal Environment Agency – the decrease in greenhouse gas emissions from German plants covered by mandatory emissions trading was an impressive 14% last year compared to the previous year.

The decisive point here was the control effect of the significantly increased price of CO2 certificates. Coal electricity had to make way for renewable energies more and more, which led to significant savings of 18% CO2 emissions in the past year compared to 2018.

The industry also saw a 4% decline to 119 million tons last year, which also applied to air traffic with only 9 million tons.

The overall decline in the EU was somewhat less, at around 9%, to 1.53 billion tons of CO2e, but the decline compared to 2005, at 36%, can be clearly seen across Europe and has thus already greatly exceeded the 21% saving target. The decline in emissions in the German area of ​​systems covered by emissions trading has so far been 30% compared to 2005.

Not least due to the effects of the corona pandemic, a significant decline in emissions is also to be expected this year, although special care must be taken in the coming years to ensure that there is no rebound in the event of a stronger increase in production. Effect is coming.

A sustainable orientation of the economy and the transport sector, which can be controlled through targeted tax and financial incentives, is therefore essential.

Last week, EUAs closed at the same level as the previous week. The auctions on EEX bring 13.9 million new EUAs to auction at four auctions on EEX in the shortened first week of June.

  (Average Quotes Exchange / OTC)   
Instrument22/05/202029/05/2020Change
EUA (Spotmarket)21.32 EUR21.31 EUR-0.01 EUR
EUA (December-2020-Future)21.40 EUR21.40 EUR+0.00 EUR
CER (Spotmarket)0.30 EUR0.32 EUR+0.02 EUR
ICE Brent Crude Oil (Benchmark Future)36.04 USD37.57 USD+1.53 USD
EURO (Currency, Forex)1.0901 USD1.1094 USD+0.0193 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