Dear Sir or Madam,
At present, the political focus in Europe seems to be shifting away from the fight against global warming, even though the Paris Agreement of December 2015 is a binding international treaty. A total of 195 countries have signed the document, committing themselves to greater climate protection. However, economic considerations seem to be the reason for delay and evasion.
Yet maximising short-term profits is the most foolish and selfish way of thinking in the fight against the unbridled forces of nature that are making their way across the world as a result of climate change. In the south-east of the United States, Hurricane Helene has unleashed its full destructive force over the past few days. In Georgia, Florida and North Carolina, but also in Virginia, Tennessee and Kentucky, the tropical storm has caused catastrophic, historic flooding and devastating damage. Many homes have been destroyed, at least 3 million households are without power, and more than 40 people have died. Reinsurance broker Gallagher Re estimates that preliminary private insurance losses could range from three to six billion US dollars.
Southeastern Europe experienced its hottest summer on record, according to a preliminary assessment by the EU’s climate service, Copernicus. People in the region were exposed to “severe heat stress” on 66 days between June and August. This is by far the highest number of severe heat stress days in south-eastern Europe, where the average is 29. The highest water temperature ever recorded was in the Mediterranean. On 24 July, the average water surface temperature between Gibraltar and Tel Aviv reached a record 28.71 degrees Celsius.
From 12 to 15 September, a powerful low-pressure system affecting mainly Germany, Austria, the Czech Republic, Slovakia, and Poland brought the heaviest four-day rainfall ever recorded in Central Europe. Austria suffered the largest economic loss from a natural catastrophe in the Alpine country’s history.
With the exponential increase in the frequency and intensity of such events, it is becoming increasingly difficult if not impossible to insure against such losses, and it is clear that policymakers cannot afford to lose a second in implementing effective measures to reduce greenhouse gas emissions. Waiting or procrastinating simply does not make economic sense. And there should be no question of using populist arguments to torpedo the EU Emissions Trading Scheme for road transport and fuels (ETS2). Reducing greenhouse gas emissions is logically essential to achieving climate change targets, and the cap-and-trade system of emissions trading is designed to ensure absolute target accuracy in a fair way.
At the start of last week, sentiment in the CO2 market shifted to a gentle but solid sideways uptrend. On Thursday, the price of December futures reached its weekly high of EUR 66.75 and on Friday it closed the week not far from that level. This could indicate that the positive channel will remain in place next week and that the price could approach the 70 euro mark again. On the other hand, if the current rally is primarily related to September options expiration, then further gains this week would be unlikely.
(Average Quotes Exchange / OTC) | |||
Instrument | 20/09/24 | 27/09/24 | Change |
EUA (December-2024-Future) | 63.39 EUR | 66.33 EUR | +2.94 EUR |
VER (Natural Carbon Offsets) | 0.30 USD | 0.33 USD | +0.03 USD |
VER (CORSIA eligible Carbon Offsets) | 0.24 USD | 0.37 USD | +0.13 USD |
nEZ (German National Carbon Units) | 45.00 EUR | 45.00 EUR | +0.00 EUR |
ICE Brent Crude Oil (Benchmark Future) | 74.94 USD | 71.99 USD | -2.95 USD |
EURO (Currency.. Forex) | 1.1163 USD | 1.1166 USD | +0.0003 USD |
(The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. 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,
Your Advantag – Team