Month: October 2021

Posted on

Emissions Trading / Carbon Market News (25/10/2021)

Dear Sir or Madam,

The German “Kreditanstalt fur Wiederaufbau”, or “KfW” for short, was founded after the Second World War as part of the Marshall Plan to support Germany that was destroyed by the war. Since then, KfW has directed investments and promoted the implementation of the government’s plans.

In the future, according to the ideas of liberal party FDP boss Christian Lindner, KfW should be funded investments in climate protection with programs amounting to at least 50 million euros annually. The aim is to promote the transformation towards decarbonization and renewal in various sectors, including the real estate industry. Why the speed limit of 130 is not implemented, even though it saves more than two million tons of CO2 annually without any remarkable effort, remains incomprehensible.

The EU market for CO2 emission rights saw a sharp correction last week, as the EUAs broke through an important support line close to 57 euros. The December future was briefly quoted just above the € 54 mark and only managed to show prices above the € 60 mark again on Friday. On a weekly closing price basis, there was still a minus of 1.17 euros.

In the coming week, 11.4 million EUA will again be auctioned on behalf of the EU, Poland and Germany at the Leipzig EEX.

  (Average Quotes Exchange / OTC)   
Instrument15/10/2122/10/21Change
EUA (Spot-Market)59.41 EUR58.24 EUR-1.17 EUR
EUA (December-2021-Future)59.44 EUR58.27 EUR-1.17 EUR
CER (Voluntary Spot-Market ø)3.50 USD4.78 USD+1.28 USD
VER (Gold Standard Spotmarkt ø)14.49 USD13.69 USD-0.80 USD
ICE Brent Crude Oil (Benchmark Future)84.82 USD85.86 USD+1.04 USD
EURO (Currency, Forex)1.1598 USD1.1645 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. 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

Posted on

Emissions Trading / Carbon Market News (18/10/2021)

Dear Sir or Madam,

the high energy prices have meanwhile also reached those responsible in the European Union. The EU Energy Commissioner Kadri Simson expressed concern about the current price development and called it an exceptional situation. Kadri Simson also named the economic upswing and the associated demand for energy as drivers.

Since revenues from CO2 emissions trading increased by almost 11 billion euros across the EU in the first nine months of the year, funds from this could be used to take measures to support households that suffer particularly due to low incomes. With regard to short-term individual measures, however, Brussels referred to the national responsibilities of the EU member states.

The price development on the European market for CO2 emission rights showed a sideways movement in the past trading week, which, however, showed an increase of almost 2% compared to the previous week’s closing price. The mark of 60 euros, which is important in terms of market psychology, could not be maintained, although the price was repeatedly above it.

  (Average Quotes Exchange / OTC)   
Instrument08/10/2115/10/21Change
EUA (Spot-Market)58.29 EUR59.41 EUR+1.12 EUR
EUA (December-2021-Future)58.33 EUR59.44 EUR+1.11 EUR
CER (Voluntary Spot-Market ø)3.50 USD3.50 USD+0.00 USD
VER (Gold Standard Spotmarkt ø)14.49 USD14.49 USD+0.00 USD
ICE Brent Crude Oil (Benchmark Future)82.50 USD84.82 USD+2.32 USD
EURO (Currency, Forex)1.1580 USD1.1598 USD+0.0018 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

Posted on

Emissions Trading / Carbon Market News (11/10/2021)

Dear Sir or Madam,

The discussion about the high energy prices continued at the different platforms during the last trading week. The search for the causes poses a not inconsiderable challenge, because in an open, globally networked market, the connections between causes and effects can rarely be precisely depicted.

So, while some saw the sharp rise in the carbon price itself as the cause, other market observers tended to see the gas price as the driving force. And depending on this, corresponding political demands follow. Apparently, the EU Commission is considering both short-term regulatory intervention in the gas market and more sustainable strategies to contain energy prices. This, in turn, may have motivated Russian President Putin to speak loudly about increasing supply volumes. Poland, which is currently walking politically on the edge of a Polexit, wants a price cap on CO2 like a mantra, and voices are also getting louder here and there calling for access restrictions for speculators.

However, their influence is obvious as far as they are concerned. Of course, this is true in all sectors that speculators are discovering as a playground for themselves – and sometimes even with dramatic effects on entire economies and/or on the fate of individuals. There is no doubt that the speculative participants have recently helped to raise the carbon price to a level that influences environmentally relevant corporate decisions – a goal explicitly sought by the Paris Agreement.

Last Wednesday, however, the price of European pollution rights fell by around 9 percent amid huge trading volumes, driving the price from over 65 euros to below the 58-euro mark for a short time. This was of course a buy signal, especially for compliance companies, and so the price initially rose again a little. By the end of trading, however, the market had not really recovered from this correction and it remains to be seen when and at what pace the price will rise again.

  (Average Quotes Exchange / OTC)   
Instrument01/10/2108/10/21Change
EUA (Spot-Market)61.99 EUR58.29 EUR-3.70 EUR
EUA (December-2021-Future)62.04 EUR58.33 EUR-3.71 EUR
CER (Voluntary Spot-Market ø)3.50 USD3.50 USD+0.00 USD
VER (Gold Standard Spotmarkt ø)14.49 USD14.49 USD+0.00 USD
ICE Brent Crude Oil (Benchmark Future)79.14 USD82.50 USD+3.36 USD
EURO (Currency, Forex)1.1592 USD1.1580 USD-0.0012 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

Posted on

Emissions Trading / Carbon Market News (04/10/2021)

Dear Sir or Madam,

The preparatory conference for this year’s World Climate Conference in Glasgow took place in Milan from September 30th to October 2nd. Participating ministers from several countries spoke out in favor of concluding negotiations on international trade in emissions certificates in line with the Paris Agreement on Climate Change. The representatives formulated the clear expectation that all technical work must now move forward quickly in order to take all outstanding decisions on the conclusion of the Paris climate agreement in Glasgow. There was also the expectation that the process for the new climate finance target for the period after 2025 would be drawn up in Glasgow and that sufficient consideration would also be given to the damage caused by climate change.

In addition to the conference, almost 400 young people from 186 countries discussed their expectations of climate policy and the outcome of COP 26 at “Youth4 Climate 2021” and presented their demands to the ministers meeting in Italy.

Meanwhile, there are also talks in Brussels calling for institutional speculators to be curtailed on the price development of CO2 emission rights in order to reduce the effects of the high prices of the energy market in connection with emission rights on European households with low incomes. A debate is to take place on October 6th in the EU Parliament with representatives of the European Commission and representatives of the Council of Europe of the member states, at which this will be discussed. In the past week, more than 300 mutual funds reported holding positions in the European carbon market.

Last Tuesday, the prices for EUAs reached a new all-time high of 65.77 Euros, but had to fall significantly again by the end of the trading week due to profit-taking, which is why the market on a weekly closing price basis lost 1.4% compared to the previous week.

It should be interesting in the coming weeks how the debate about speculative funds will develop and whether and when there could be position limits or similar restrictions.

  (Average Quotes Exchange / OTC)   
Instrument24/09/2101/10/21Change
EUA (Spot-Market)62.78 EUR61.99 EUR-0.79 EUR
EUA (December-2021-Future)62.94 EUR62.04 EUR-0.90 EUR
CER (Voluntary Spot-Market ø)3.50 USD3.50 USD+0.00 USD
VER (Gold Standard Spotmarkt ø)14.49 USD14.49 USD+0.00 USD
ICE Brent Crude Oil (Benchmark Future)78.03 USD79.14 USD+1.11 USD
EURO (Currency, Forex)1.1720 USD1.1592 USD-0.0128 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