Author: advantag

Dear Sir or Madam,

The German Economics Minister Peter Altmaier (CDU) was Federal Environment Minister from May 2012 to December 2013 and has been Federal Minister for Economics and Energy since March 2018, as the ministry has been called since December 2013.

Minister of Economic Affairs Altmaier has now announced with regard to the topic of climate protection that this has priority over all other topics and should be given higher priority in all political decisions. This is surprising in that Altmaier has been rather negative about stricter climate and environmental protection requirements in his position as Minister of Economics.

Nevertheless, he wants the “Charter for Climate Neutrality and Economic Power” to be passed with the help of the opposition before the federal elections next year. This includes the goal of climate neutrality by 2050, which is to be achieved through annual CO2 budgets from 2022, among other things. Public institutions should first become climate neutral as early as 2035. Climate-neutral companies are to be promoted with government grants. In addition, CO2 emissions are to be reduced by 55% by 2030 compared to 1990; previously the target was less ambitious at 40%. As a further measure, the price for CO2 emissions in the national emissions trading for buildings and transport is also to be increased. It remains to be seen how the trade associations will react to this move.

The price for European CO2 emission rights has visibly increased again last week after the losses of the previous week, as the European Commission has also proposed the greenhouse gas reduction target of 55% by 2030 compared to 1990 and now wants to present a draft in the coming days. The ENVI environmental committee had previously even agreed on 60%.

(Average Quotes Exchange / OTC)
Instrument	04/09/2020	11/09/2020	Change
EUA (Spot-Market)	27.41 EUR	28.24 EUR	+0.83 EUR
EUA (December-2020-Future)	27.36 EUR	28.26 EUR	+0901 EUR
CER (Spot-Market)	0.29 EUR	0.31 EUR	+0.02 EUR
ICE Brent Crude Oil (Benchmark Future)	42.31 USD	39.72 USD	-2.59 USD
EURO (Currency, Forex)	1.1839 USD	1.1836 USD	-0.0003 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,

Tree death in Germany, which has particularly affected spruce trees in many parts of the country due to the persistent drought since 2018, is a direct consequence of climate change. Even if there was a little more rainfall this year, it was unevenly distributed.

A major problem can be identified in those parts of the country where below-average precipitation meets above-average temperatures. Across Germany, August 2020 was on average 3.4 ° C warmer than the long-term average and just as warm as in 2015 or in the drought summer of 2018.

According to the Helmholtz Center for Environmental Research in Leipzig, the situation in deeper layers around 1.80 meters is particularly critical, with the exception of the Bavarian south. This is where the drought is most felt, especially on the Lower Rhine and in Eastern Germany. But also in the upper classes, which are of particular importance for agriculture, North Rhine-Westphalia, among others, has major problems, such as the drought monitor of the Helmholtz Center at https://www.ufz.de/index.php?de=37937 shows.

In the current trading week, 21.7 million certificates are being offered for auction, including 810,500 EUAA for the aviation industry, which put the price for emission rights under pressure in the past week, as did falling energy prices.

(Average Quotes Exchange / OTC)
Instrument	28/08/2020	04/09/2020	Change
EUA (Spotmarket)	29.48 EUR	27.41 EUR	-2.07 EUR
EUA (December-2020-Future)	29.47 EUR	27.36 EUR	-2.11 EUR
CER (Spotmarket)	0.29 EUR	0.29 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	45.85 USD	42.31 USD	-3.54 USD
EURO (Currency, Forex)	1.1901 USD	1.1839 USD	-0.0062 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 journalists’ network Investigate took on the European subsidies for fossil fuels and calculated them for the individual countries. In Europe, 137 billion euros are spent annually on subsidizing fossil fuels.

Germany is by far the absolute front runner with 37.5 billion euros per year, followed by Great Britain (19 billion euros) and Italy (18.3 billion euros).

In particular, in Germany 3.5 billion euros are subsidized by carbon leakage (Europe-wide 18 billion euros), as companies in high-energy-intensive sectors such as the steel, chemical or cement industries have to purchase fewer emission rights, as they would otherwise be at a competitive disadvantage compared to production countries without emissions trading to have.

By subsidizing diesel and kerosene over petrol, Germany is even foregoing more than 11 billion euros a year.

In order to still achieve the necessary greenhouse gas savings, Germany has decided on national emissions trading for the transport and building sector, and the EU is discussing significantly higher ambitions for its reduction targets for 2030.

This week, due to today’s British Summer Bank Holiday and a meeting of the working committee of the Leipzig EEX on Thursday, auctions with a total volume of 6,545,000 EUA will only take place on Tuesday and Friday. The summer break will be over next week and 21.7 million certificates will be auctioned, including 810,500 EUAA for the aviation industry.

The new trading week started again bullish with a clear plus and briefly exceeded the mark of 30 euros per EUA.

(Average Quotes Exchange / OTC)
Instrument	14/08/2020	28/08/2020	Change
EUA (Spotmarket)	25.45 EUR	29.48 EUR	+4.03 EUR
EUA (December-2020-Future)	25.48 EUR	29.47 EUR	+3.99 EUR
CER (Spotmarket)	0.29 EUR	0.29 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	44.95 USD	45.85 USD	+0.90 USD
EURO (Currency, Forex)	1.1840 USD	1.1901 USD	+0.0064 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 Madam or Sir,

Last Wednesday, the German government approved the Climate Protection Report 2019. According to the report, total emissions in 2019 fell by almost 54 million tonnes of CO2 equivalents to around 805 million tonnes compared with 2018, which represents a reduction of 6.3 percent. Against the background of Germany’s greenhouse gas reduction targets, Germany has emitted around 35.7 percent less greenhouse gases in 2019 than in the reference year 1990. The Climate Protection Act stipulates a reduction of at least 35 percent by 2020 and at least 55 percent by 2030 (in each case compared to 1990). In accordance with the coalition agreement, the 2010 energy concept includes non-binding greenhouse gas reduction targets of 40 % for 2020. In the meantime, this mark seemed hardly achievable. However, as the current climate protection report now makes clear, in addition to the measures of the “Action Programme Climate Protection 2020”, in particular the EU emissions trading with significantly higher certificate prices has made a stronger reduction contribution than was expected six months ago. Moreover, as the report is limited to the year 2019, the effects of the Covid 19 pandemic could not yet be taken into account. If the actual greenhouse gas emissions for the year 2020 are significantly lower, the 40 percent target could still be achieved.

At the beginning of the past trading week, the price of EUAs received tailwind from the bullish energy complex and strong auction results and rose towards the 27 euro mark. Then, however, an unexpected server problem occurred on Wednesday, which shut down the entire emissions registry for the rest of the week. The European Commission stated in a commentary on Thursday that this technical problem could be solved by the end of the week, which was successfully implemented. However, the initial uncertainty about possible backgrounds and the fact that no physical trading could take place for days pushed the price down to a stable level below the 26 Euro mark.

(Average Quotes Exchange / OTC)
Instrument	14/08/2020	21/08/2020	Change
EUA (Spotmarket)	25.45 EUR	25.60 EUR	+0.15 EUR
EUA (December-2020-Future)	25.48 EUR	25.65 EUR	+0.17 EUR
CER (Spotmarket)	0.29 EUR	0.29 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	44.95 USD	44.28 USD	-0.67 USD
EURO (Currency, Forex)	1.1840 USD	1.1799 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 Madam or Sir,

While the Corona crisis significantly increases the likelihood that Germany will still achieve its self-imposed CO2 reduction target of 40% compared to 1990, the Federal Government remains on the ball and convenes an independent expert council on climate issues. This consists of the members Prof. Dr. Marc Oliver Bettzuege, Cologne; Prof. Dr. Thomas Heimer, Wiesbaden; Prof. Dr. Hans-Martin Henning, Freiburg; Dr. Brigitte Knopf, Berlin; Dr. Barbara Schlomann, Karlsruhe.

This expert council examines the estimate of the greenhouse gas emissions of the previous year submitted by the Federal Environment Agency as well as the assumptions on which the information on the greenhouse gas reduction effect of immediate measures and climate protection programs is based. He should continue to provide his expertise in the event that the German government changes the permissible annual emissions in the Federal Climate Protection Act or decides on further climate protection measures. In addition, the German government or the Bundestag can commission the Expert Council to prepare special reports.

In the past week, the market for European CO2 emission rights continued to decline and also consumed the 25 euro mark down, only to maintain itself well above this mark by the weekend. The new trading week also starts more pleasantly, not least because the energy markets offer some support here.

(Average Quotes Exchange / OTC)
Instrument	07/08/2020	14/08/2020	Change
EUA (Spotmarket)	26.36 EUR	25.45 EUR	-0.91 EUR
EUA (December-2020-Future)	26.42 EUR	25.48 EUR	-0.94 EUR
CER (Spotmarket)	0.30 EUR	0.29 EUR	-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	44.64 USD	44.95 USD	+0.31 USD
EURO (Currency, Forex)	1.1785 USD	1.1840 USD	+0.0055 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