Month: April 2021

Dear Sir or Madam,

The past week can rightly go down in the history books as historic with regards to global climate protection.

Business leaders who have previously classified climate protection as a nuisance and unnecessary matter will in future have the same fate as fossil fuels.

Last Wednesday, the decision-makers of the European Union manifested the reduction target of 55% greenhouse gas reductions compared to 1990 and thus described the roadmap for the next 30 years.

In 2030, the EU should not emit more than 255 million tons of CO2 or its equivalent in other greenhouse gases.

In addition to the ambitious 2030 reduction target, the European Commission is also to set a further interim target in 2040 by 2024. The goal of reducing CO2 emissions by 95% in 2050 could also give way to a net-zero strategy in the future.

As if that hadn’t already been enough for a very good week for climate protection, US President Joe Biden announced at the end of last week at the virtual climate protection meeting he had called that the USA, as the second largest greenhouse gas emitter, should become climate neutral by the middle of the century.

UN Secretary General António Guterres also demanded that fossil fuels should be phased out by 2030 and that CO2 should be priced worldwide, and China’s head of state Xi Jinping and Russian President Vladimir Putin also showed their willingness to cooperate. If the foundation stone for an ambitious joint action against global warming has been laid here, April 2021 may be the time that sealed decarbonization.

One week before the end of the submission deadline for companies subject to EU emissions trading, our predictions were fulfilled and the price for European Allowances (EUA) reached a new all-time high of EUR 47.36 per ton of CO2.

Anyone who has speculated that the certificates will give way again is now mistaken and has to pay a significantly higher price to meet his tax obligation; the prices rose again a good 6% compared to the previous week.

Whether and when the speculators will begin to take profits cannot be precisely predicted, but the stock market is not a one-way street and speculators also tend to liquidate parts of their positions at a profit. The coming trading days will therefore remain exciting.

(Average Quotes Exchange / OTC)
Instrument	16/04/2021	23/04/2021	Change
EUA (Spot-Market)	44.42 EUR	46.90 EUR	+2.48 EUR
EUA (December-2021-Future)	44,33 EUR	46.95 EUR	+2.62 EUR
CER (Spot-Market)	0.62 EUR	0.63 EUR	+0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	66.69 USD	66.05 USD	-0.64 USD
EURO (Currency, Forex)	1.1980 USD	1.2097 USD	+0.0117 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. CERs CP2 are eligible in ETS until end of April 2021 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,

In January of this year, national emissions trading started in Germany to give the transport and real estate sector a price for CO2 emissions.

The figures show that this is necessary: ​​more than 2.2 billion tons of CO2 emissions are caused annually in these two sectors, which is around 50% more than in the sectors covered by European emissions trading system EU ETS.

For this reason, the European Commission is now examining the possibility of including these two sectors in the EU emissions trading scheme. In order to stay in line with the EU’s 2050 emission reduction targets for these sectors, a price of EUR 250.00 per ton would be required, as experts from the information service provider ICIS published last week.

There are currently several options for EU-wide pricing of these sectors up for debate; Among other things, a separate European cap-and-trade mechanism, which is initially decoupled from the existing EU ETS, or a step-by-step system with a specified price corridor, as in Germany, where pricing this year starts at 25 euros per ton and a price range of 55 euros from 2026 -65 euros per ton.

Whichever regulation the EU chooses – there are increasing signs that greenhouse gas emissions from fossil fuels and fuels will be priced across Europe in the not too distant future.

The prices for CO2 emissions in the sectors already covered, such as power generation, intra-European flights and heavy industry, continued to develop bullish over the past week. On Tuesday, the December benchmark contract reached a new all-time high of EUR 44.35 per EUA, even if the rest of the week was a little weaker.

It would be astonishing if the prices fell significantly before the end of the submission period in the trading week after next.

(Average Quotes Exchange / OTC)
Instrument	01/04/2021	09/04/2021	Change
EUA (Spot-Market)	42.43 EUR	43.56 EUR	+1.13 EUR
EUA (December-2021-Future)	42,47 EUR	43.64 EUR	+1.17 EUR
CER (Spot-Market)	0.63 EUR	0.60 EUR	-0.03 EUR
ICE Brent Crude Oil (Benchmark Future)	64.64 USD	63.02 USD	-1.62 USD
EURO (Currency, Forex)	1.1815 USD	1.1900 USD	+0.0085 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