Emissions Trading / Carbon Market News (04/01/2021)

Dear Sir or Madam,

First of all, we don’t want to fail to wish you a happy new year.

From the point of view of the markets, the past year was positive despite the corona pandemic and its negative consequences for the global economy. Not only did the DAX record an all-time high shortly before the end of the year, the prices for CO2 emission rights also reached their highest level for the December 2021 future of EUR 33.50 per EUA on December 28, 2020.

At the end of the year, the no-deal Brexit, which was prevented just in time, was a strong price driver. In addition, Donald Trump has now signed the US economic stimulus package, which is why the prices so far see no reason for a correction in the new year.

But as we all know, the stock market is not a one-way street and corrections are necessary and good in both the financial markets and the commodity markets. The only question is when this will happen and how quickly the bullish sentiment will then turn, which could be caused solely by negative reports regarding new or more extensive lockdowns in the leading industrial nations.

The prices for emission rights also start with a significant plus on the first trading day in the new year, which, in addition to the current positive view of the market participants, is also due to the fact that the first auction of EUAs in 2021 will not take place until Friday, January 29th, 2021 Leipzig EEX is carried out. On this day, 2,651,000 EUAs of the new trading period will be auctioned, which, however, cannot be used to meet the surrender obligation for 2020. In the first week of February, 15.1 million EUA will be auctioned.

Please also note that the Union Registry will not be accessible until January 7th, 2021, 10:00 a.m. due to a software update and therefore no transactions can be carried out.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)32.02 EUR32.54 EUR+0.52 EUR
EUA (December-2021-Future)32.19 EUR32.72 EUR+0.53 EUR
CER (Spot-Market)0.40 EUR0.37 EUR-0.03 EUR
ICE Brent Crude Oil (Benchmark Future)51.19 USD51.42 USD+0.23 USD
EURO (Currency, Forex)1.2153 USD1.2197 USD+0.0044 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