Month: September 2021

Dear Sir or Madam,

yesterday, Sunday, the outcome of the elections in Germany suggests that the formation of a government will be rather difficult. But especially the most unpleasant constellation from the point of view of the capital markets, a possible new red-green-red federal government did not get a majority, which the stock exchange prices this morning already rewarded with the DAX. The probability that there will be radical political changes is significantly lower with the possible government coalitions that are now to be formed.

Even if the German Greens did worse than expected, it is very likely that they will play a role in the new government, be it with the leading CDU / CSU union or the SPD.

In doing so, it is very likely that they will want to implement more climate protection and that already set incentives to buy on the market for European CO2 emission rights on Friday in the run-up to the elections. These were seen in particular by investment funds that have expanded their portfolio of emission rights. The oil prices also supported the rise and so the EUAs reached a new all-time high of EUR 64.16 on the futures market on Friday afternoon, after which the prices fell back somewhat towards the end of the day.

This morning the market is still clearly bullish, which has led to a new current all-time high of EUR 64.85. It is currently not foreseeable when there will be a correction which taxable companies could use to buy.

(Average Quotes Exchange / OTC)
Instrument	17.09.21	12.09.21	Change
EUA (Spot-Market)	59.45 EUR	62.78 EUR	+3.33 EUR
EUA (December-2021-Future)	59.48 EUR	62.94 EUR	+3.46 EUR
CER (Voluntary Spot-Market ø)	3.50 USD	3.50 USD	+0.00 USD
VER (Gold Standard Spotmarkt ø)	14.49 USD	14.49 USD	+0.00 USD
ICE Brent Crude Oil (Benchmark Future)	75.31 USD	78.03 USD	+2.72 USD
EURO (Currency, Forex)	1.1737 USD	1.1720 USD	-0.0017 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 and VERs are average prices in the voluntary carbon offsetting market (eco securities). 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 21st United Nations Climate Change Conference in Paris on 12 December 2015, the 195 members signed the commitment, made famous and celebrated as the “Paris Agreement”, to keep the increase in the average temperature of the Earth well below 2 degrees Celsius above pre-industrial levels and to make efforts to limit the temperature increase to 1.5 degrees. To achieve these goals, the signatories committed to regularly formulate their own climate protection contributions at national level, so-called NDCs (Nationally Determined Contributions).

Before the 26th UN Climate Change Conference begins in Glasgow, Scotland, in a few weeks, the UN published a report last Friday that global greenhouse gas emissions in 2030 will be 16% higher than in 2010, even if all NDCs submitted under the Paris Agreement are fully achieved. According to climate models, current emission projections put the world on track for catastrophic warming of 2.7°C by the end of the century. Against this background, the NDCs to date are insufficient and urgently need to be improved. While this has already happened here and there, the efforts of the global community are still not sufficient to meet the Paris Agreement. It must be the urgent goal of the conference in Glasgow to take immediate corrective action.

In the past trading week, the carbon price has for the first time again detached itself from the development on the energy market. In particular, the link to the gas price seems to have been abandoned by traders, at least for the time being. Over the week, the December contract corrected below the 60-euro mark, where the price currently seems to be settling.

(Average Quotes Exchange / OTC)
Instrument	10.09.21	17.09.21	Change
EUA (Spot-Market)	60.89 EUR	59.45 EUR	-1.44 EUR
EUA (December-2021-Future)	60.92 EUR	59.48 EUR	-1.44 EUR
CER (Voluntary Spot-Market ø)	3.50 USD	3.50 USD	+0.00 USD
VER (Gold Standard Spotmarkt ø)	14.49 USD	14.49 USD	+0.00 USD
ICE Brent Crude Oil (Benchmark Future)	73.42 USD	75.31 USD	-1.89 USD
EURO (Currency, Forex)	1.1810 USD	1.1737 USD	-0.0073 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 and VERs are average prices in the voluntary carbon offsetting market (eco securities). 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,

Actually the term is utter nonsense: climate protection. Nobody has to protect the climate, because the climate doesn’t care what it is like. Rather, it is about protecting the conditions for human life. The planet will adapt to the climate, that much is certain. Animal species will disappear and new, more resilient forms of life will emerge. No one can specifically predict whether human race will be sufficiently resistant to the climate catastrophe they have accelerated. But one thing is certain, however – extreme weather events will continue to increase in the future. In order to reduce the speed of climate change to an adaptable level, a swift global approach is essential.

US President Joe Biden recognized this in contrast to his predecessor, who had significantly lower cognitive abilities, and last week declared the “red alert”: “The country and the world are in danger. This is not an exaggeration. That’s a fact. “, said US President Joe Biden in view of the recurring devastating forest fires in California and Hurricane Ida. Accordingly, an additional $ 24 billion should now be considered in the budget. In Germany, too, the consequences of extreme weather events are increasingly costing money: the uninsured damage from the heavy rain catastrophe alone is estimated at 30 billion euros. And that’s just the interim balance for 2021.

Last week, the prices for European CO2 emission rights rose again significantly and on Wednesday marked a new all-time high at EUR 63.35 per EUA; accompanied by bullish energy prices. However, EUA rates came under pressure on Friday after the completion of Nord Stream 2 was confirmed and is set to deliver gas from Russia before the end of the year. As a result, some market participants took profits and the trading week closed at EUR 60.92 in the ICE December futures contract.

(Average Quotes Exchange / OTC)
Instrument	03.09.21	10.09.21	Change
EUA (Spot-Market)	61.23 EUR	60.89 EUR	-0.34 EUR
EUA (December-2021-Future)	61.32 EUR	60.92 EUR	-0.40 EUR
CER (Voluntary Spot-Market ø)	3.26 USD	3.26 USD	+0.00 USD
VER (Gold Standard Spotmarkt ø)	14.03 USD	14.03 USD	+0.00 USD
ICE Brent Crude Oil (Benchmark Future)	72.56 USD	73.42 USD	+0.86 USD
EURO (Currency, Forex)	1.1877 USD	1.1810 USD	-0.0067 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 and VERs are average prices in the voluntary carbon offsetting market (eco securities). 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,

Beatriz Yordi, Director of the European Commission for European and International CO2 Markets, commented at a video conference on the latest reform of the EU emissions trading system in relation to last week’s price increase, saying that the market is working and that a corresponding decarbonisation Send a signal to the economy. In addition, Yordi said that you have to stay calm at the current prices above 60 euros. Market intervention to lower prices is therefore currently unlikely, even if it would certainly find supporters in some EU countries.

The prices for CO2 emission rights jumped above the 60 euro mark for the first time in the last trading week and defended them until the end of the trading week. And this morning, too, the market opened with a clearly positive signal, having already exceeded the mark of 63 euros per EUA in early trading.

The prices were supported by increased gas prices, which gave corresponding signals out of concerns about the supply from Russia and the new Nord Stream 2 pipeline.

The fact that the normal volume of 11,418,000 EUA has been up for auction this week has not yet slowed the market down, but demand for the auctions should remain interesting.

(Average Quotes Exchange / OTC)
Instrument	27.08.21	06.09.21	Change
EUA (Spot-Market)	58.94 EUR	61.23 EUR	+2.29 EUR
EUA (December-2021-Future)	59.00 EUR	61.32 EUR	+2.32 EUR
CER (Voluntary Spot-Market ø)	3.26 USD	3.26 USD	+0.00 USD
VER (Gold Standard Spotmarkt ø)	14.03 USD	14.03 USD	+0.00 USD
ICE Brent Crude Oil (Benchmark Future)	72.59 USD	72.56 USD	-0.03 USD
EURO (Currency, Forex)	1.1795 USD	1.1877 USD	+0.0082 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 and VERs are average prices in the voluntary carbon offsetting market (eco securities). 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