Month: March 2021

Dear Sir or Madam,

The German Fuel Emissions Trading Act (BEHG) creates the basis for the issuance and trading of certificates in the national emissions trading system (nETS) for emissions from fuels and ensures that these emissions are priced unless they are covered by EU emissions trading.

This particularly affects the building and transport sectors. The aim is to achieve the national climate protection goals and climate neutrality by 2050. The purpose of the German national emissions trading system is to price fossil greenhouse gas emissions. The law was passed in 2019 as part of the German government’s climate package and came into force in 2021.

In the introductory phase (2021 to 2025), the certificates will be sold at a fixed price. At the start of CO2 pricing in early 2021, a price of 25 euros / tCO2 is planned; this will rise to 55 euros / tCO2 by 2025.

From 2026, emission rights will then be auctioned, whereby a price corridor with a minimum price of 55 euros and a maximum price of 65 euros per emissions certificate has been set. It is not yet known whether a price corridor will also be specified in the following years. The obligated companies must report their emissions for the year 2021 by July 31, 2022 for the first time and submit certificates for the reporting year 2021 in the emissions trading register of the German Emissions Trading Authority (DEHSt) by September 30, 2022.

The Leipzig energy exchange EEX, which is already auctioning the certificates within the framework of the European emissions trading system (EU ETS), was awarded the contract to issue emissions certificates last week. From 2026, the emission certificates are to be auctioned there as soon as free trade is to begin.

Advantag will expand its service areas and, as an intermediary, supply customers from the area of ​​national emissions trading with the required amount of certificates and at the same time advise them on the nETS.

The prices for EU emission allowances (EUA) fell slightly last week and closed on the spot market after a recovery on Friday with a slight minus at EUR 41.63 per ton of CO2e.

What is remarkable, however, is the price development for CER certificates from CDM projects, which can only be used until April 30, 2021 for the partial fulfillment of the tax obligation. These have risen sharply in recent weeks, as CERs of some CDM projects can be used as part of the global CORSIA aviation emissions trading scheme and are therefore subject to increased demand. In addition, plant operators who are obliged to participate in the EU emissions trading system check their last usable quotas for the third trading period and are currently having them procured.

(Average Quotes Exchange / OTC)
Instrument	19/03/2021	26/03/2021	Change
EUA (Spot-Market)	41.85 EUR	41.63 EUR	-0.22 EUR
EUA (December-2021-Future)	41.97 EUR	41,73 EUR	-0.24 EUR
CER (Spot-Market)	0.44 EUR	0.50 EUR	+0.06 EUR
ICE Brent Crude Oil (Benchmark Future)	64.52 USD	64.47 USD	-0.05 USD
EURO (Currency, Forex)	1.1905 USD	1.1794 USD	-0.0111 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

Dear Sir or Madam,

Last week, the German Federal Environment Agency, together with the Federal Environment Ministry, announced the preliminary figures for Germany’s greenhouse gas emissions.

Germany emitted a total of around 739 million tons of CO2e last year, which was around 70 million tons less than in 2019, a decrease of 8.7%.

Thus, thanks to the help of the corona pandemic and the associated decline in the transport and industrial sector, with 40.8%, Germany still met the target of 40% emissions reduction compared to the reference year 1990. Insofar as Germany does not exhaust all options to take additional measures to reduce emissions, it remains to be feared that emissions will rise sharply again after the corona crisis has tapered off.

Due to the sharp rise in prices in EU emissions trading, however, CO2 has also been successfully saved in the energy sector, since the generation of electricity from coal, which is particularly harmful to the climate, has become increasingly unprofitable and is being replaced by gas in addition to renewable energies.

A decrease of around 38 million tons of CO2 was achieved here, which means a decrease of 14.5% compared to 2019. At around 221 million tons of CO2, the emissions were clearly below the annual emission volume of 280 million tons permitted in the Federal Climate Protection Act. The generation of electricity from lignite fell by 23 million tons and the generation of electricity from hard coal fell by 13 million tons of CO2.

The transport sector fell by 11.4% to 146 million tons of CO2 and the industrial sector by 4.6% to 178 million tons. Agriculture also reduced its emissions by 2.2% to 66 million tons of CO2 or its equivalent (CO2e), and the waste sector also made its contribution with a minus of 3.8%.

However, emissions in the building sector fell comparatively little by just 2.8% to 120 million tons of CO2e. The effects of the increase in home office can be seen here, as household emissions have risen slightly. The upper limit of 118 million tons resulting from the Climate Protection Act was exceeded by two million, which makes further savings necessary in this sector in particular, which is to be promoted by the national emissions trading, which came into force this year.

The prices in the European emissions trading system EU ETS rose again in the last week of trading and, in addition to the DAX, showed that they are also capable of repeated all-time highs. This record was set on Thursday at 43.77 in the December contract and trades above the 44 mark were already reported on the spot market. Towards the end of the last week of trading, the futures market closed just below 42 euros due to profit-taking; the CERs increased significantly to EUR 0.44 with a view to the approaching end of the submission period for 2020.

In any case, it will be exciting to see how the prices will move towards the submission deadline, as there are still some system operators who have not yet decided to buy due to the high price level. Should the bulls continue to hold the scepter in their hands, this reluctance could turn out to be very expensive due to the current bull market.

(Average Quotes Exchange / OTC)
Instrument	12/03/2021	19/03/2021	Change
EUA (Spot-Market)	42.79 EUR	41.85 EUR	-0.94 EUR
EUA (December-2021-Future)	42.85 EUR	41,97 EUR	-0.88 EUR
CER (Spot-Market)	0.39 EUR	0.44 EUR	+0.05 EUR
ICE Brent Crude Oil (Benchmark Future)	69.21 USD	64.52 USD	-4.69 USD
EURO (Currency, Forex)	1.1952 USD	1.1905 USD	-0.0047 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

Dear Sir or Madam,

The past week of trading was marked by the gigantic US aid program, which provided the already optimistic financial markets with further tailwind. US President Joe Biden plans to distribute US $ 1.9 trillion to get the US economy back on track for growth.

The Dow Jones then rose sharply, which was a new all-time high of 32,793 points on Friday. The DAX also hit a new all-time high of 14,595 points last week.

This optimism also prevailed for CO2 emission rights in European emissions trading, which also reached a new all-time high last Friday at EUR 42.90 per EUA.

At the start of trading today, this was topped again at EUR 42.92 in the December future, but the price fell a little in early trading.

This week, 15,091,500 EUAs will be auctioned again on all five trading days from the EU, Poland and Germany and on Wednesday an additional 614,500 EUAA of the fourth trading period for the first time.

(Average Quotes Exchange / OTC)
Instrument	05/03/2021	12/03/2021	Change
EUA (Spot-Market)	38.98 EUR	42.79 EUR	+3.81 EUR
EUA (December-2021-Future)	39.02 EUR	42,85 EUR	+3.83 EUR
CER (Spot-Market)	0.37 EUR	0.39 EUR	+0.02 EUR
ICE Brent Crude Oil (Benchmark Future)	69.56 USD	69.21 USD	-0.35 USD
EURO (Currency, Forex)	1.1911 USD	1.1952 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

Dear Sir or Madam,

At the end of last week, the German federal government and the four energy supply companies EnBW, E.ON, RWE and Vattenfall explored the key points for compensation payments in relation to Germany’s nuclear phase-out, as the German Federal Environment Agency said on Friday.

Even if many may see it as unnecessary, this was done due to a ruling by the Federal Constitutional Court. Germany’s nuclear phase-out remains unaffected. The last nuclear power plant in Germany is scheduled to go offline at the end of 2022. For this, the Federal Republic of Germany pays the four plaintiffs financial compensation totaling around EUR 2.428 billion. On the other hand, the companies concerned undertake to withdraw all pending lawsuits and to forego lawsuits or legal remedies against the compensation scheme. However, the corporate bodies must still give their consent to this.

Microsoft founder Bill Gates has now published a book that is well worth reading, “How we can still prevent the climate catastrophe” and has incorporated many scientific findings on this. He also showed that the global economies will be much more expensive if we do not fight climate change than if we exhausted our possibilities to slow it down.

Bill Gates sees part of the solution to the problem of the constantly increasing energy demand in new fourth generation nuclear power plants, which in the near future cannot be met by renewable energies alone. And if you just stick to the facts without emotion, you will realize that the victims of the nuclear disasters in Chernobil and Fukoshima are only a fraction of the human lives that are claimed every year by the emission of gigatons of CO2 and particles when converting fossil fuels into electricity.

The topic of nuclear power will remain an emotional issue, however, because a mushroom cloud is easier to visualize than air pollution and the slower advancing climate change caused by CO2 emissions. On the other hand, one must not lose sight of the repository problem of nuclear power generation, even if the nuclear waste from the latest reactors with relatively short half-lives is much easier to treat. In any case, the topic is important enough not to be discussed emotionally and dogmatically but on a factual basis.

The market for European emission rights moved sideways last week, only to move towards the weekly high on Friday. In the end it closed with a plus of EUR 38.98 per ton of CO2e compared to the previous week.

(Average Quotes Exchange / OTC)
Instrument	26/02/2021	05/03/2021	Change
EUA (Spot-Market)	37.22 EUR	38.22 EUR	+1.76 EUR
EUA (December-2021-Future)	37.28 EUR	39,02 EUR	+1.74 EUR
CER (Spot-Market)	0.37 EUR	0.37 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	64.34 USD	69.56 USD	+5.22 USD
EURO (Currency, Forex)	1.2071 USD	1.1911 USD	-0.0160 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

Dear Sir or Madam,

A team of British, Irish and German scientists have published the results of their research in the journal “Nature Geosciences”, which shows that the Gulf Stream has not been as weak for more than 1,000 years as it has been in previous decades.

This news is quite worrying, as further slowdown in ocean circulation could have noticeable consequences for the climate. The Gulf Stream transports warm surface water from the equator to the north and in return sends cold, low-salt deep water back to the south. Among other things, the electricity ensures comparatively mild winters in Europe and conditions in the south that are less hostile to life.

Since the middle of the 20th century I have now demonstrably slowed it down by around 15 percent, which is related to human-made global warming. If we let global warming progress, the Gulf Stream will weaken further and decrease by up to 45% by the end of the century, as Stefan Rahmstorf from the Potsdam Institute for Climate Impact Research, PIK for short, discussed.

The CO2 emissions trading is a tried and tested means of reducing industrial emissions through market-based means, which has so far been working according to plan in the EU. Great Britain has therefore also put its own emissions trading system into operation, which will start in mid-May with a minimum price of 22 British pounds per UKA. This year, a total of 83 million British emission allowances are to be auctioned and 58 million granted free of charge to plant operators.

Prices in European emissions trading have moved sideways in the past week, even if crude oil has moved towards US $ 70 for the Brent variety. The milder temperatures and profit-taking ensured that Thursday’s attempt to hit the € 40 mark again failed.

The new trading week starts with a plus of currently a little more than 2% and could bring a new attempt towards 40 euros.

(Average Quotes Exchange / OTC)
Instrument	19/02/2021	26/02/2021	Change
EUA (Spot-Market)	37.37 EUR	37.22 EUR	-0.15 EUR
EUA (December-2021-Future)	37.40 EUR	37,28 EUR	-0.12 EUR
CER (Spot-Market)	0.39 EUR	0.39 EUR	-0.02 EUR
ICE Brent Crude Oil (Benchmark Future)	62.67 USD	64.34 USD	+1.67 USD
EURO (Currency, Forex)	1.2117 USD	1.2071 USD	-0.0046 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