Category: General

Dear Sir or Madam,

The Chilean leadership of the world climate conference, which ended yesterday with the biggest delay in its history, was clearly disappointed by the outcome of the summit. The participants probably could have started their departure already on Friday, because the efforts of Chilean Environment Minister Carolina Schmidt to get a presentable result in the extension failed because of bitter resistance of a few states – above all Brazil. But even the USA, Saudi Arabia and Australia did not want to commit themselves to binding regulations for international cooperation and thus in connection with global trade in climate protection certificates.

A year ago, the summit in Poland had already failed on the same question, and now it is to be finally addressed in Glasgow in 2020. However, one does not have to be a downright pessimist to express doubts here. The states do not shake off the decisions of Paris in principle, except for the USA, which had declared its withdrawal from the agreement and thus officially will step off on 4 November 2020. But these national interests remain, which are closely linked with the interests of the lobby around fossil energy sources and could not be overcome so far. Thus the question of how the international community of the UN wants to solve this knot justifiably arises.

A few days ago, the European Union also found itself facing a similar question, with its new Commission President von der Leyen pushing ahead with the proposal of a so-called “Green Deal”. Here it was Poland that refused to sign. But here, too, the focus should be on the other states, which have apparently understood that the pace of global processes in favour of the global climate lags far behind the worsening climate crisis. There is also a growing awareness and indignation that a few states are in a position to block important processes.

Last week, the CO2 market was once again influenced by speculative traders. During the first days of trading, the price stagnated at 25 euros. It was not until Thursday that the market began to gain momentum again. On Friday the price was even pushed to just below the 26 Euro mark. But the bulls apparently ran out of steam at this point. When the mark was not overcome, the bears again took over the direction. The price melted away and only found support in early trading just above EUR 23.50 today.

(Average Quotes Exchange / OTC)
Instrument	06/12/2019	13/12/2019	Change
EUA (Spotmarket)	24.88 EUR	24.01 EUR	-0.87 EUR
EUA (December-2019-Future)	24.94 EUR	24.02 EUR	-0.92 EUR
CER (Spotmarket)	0.18 EUR	0.20 EUR	+0.02 EUR
ICE Brent Crude Oil (Benchmark Future)	64.34 USD	64.93 USD	+0.59 USD
EURO (Currency, Forex)	1.1055 USD	1.1120 USD	+0.0065 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 German Chancellor Angela Merkel has again invited top representatives from politics and the automobile industry to this evening’s car summit. All participants are aware that there is still a wide gap between idea and reality when it comes to the environmentally relevant topic of electro mobility. In the run-up to the meeting, the Chancellor has set the target of one million charging stations in Germany by 2030 in her video pod cast. It has obviously become a crucial question whether the charging infrastructure should first be expanded or whether the production and sale of electric cars should first be boosted. Here again the question of range plays a decisive role. Drivers have been conditioned for decades to fossil fuel being available around the clock, seven days a week. Hardly anyone goes on a journey with a full can of gasoline in their car, no matter how long the planned journey may be. But electric mobility lacks exactly this simplicity. It is hardly surprising that flexibility plays a decisive role in the decision to buy. The Chancellor’s announcement therefore seems to be pointing in the right direction. In addition to this topic, other aspects will also be discussed, such as other drive technologies and autonomous driving.

The CO2 market has received a significant boost in the last trading week. The “never ending story” of the British EU withdrawal once again played a significant role in this. Instead of the planned Brexit there are now new elections, but this can hardly eliminate the real sticking points. The price for the European Pollution Rights (EUA) rose steadily during the week and even surpassed the 26 Euro mark for a short time. However, this trend was abruptly reversed on Friday, when massive selling was seen in the afternoon and the price leveled off at EUR 25.30.

(Average Quotes Exchange / OTC)
Instrument	25/10/2019	01/11/2019	Change
EUA (Spotmarket)	24.95 EUR	25.28 EUR	+0.33 EUR
EUA (December-2019-Future)	24.97 EUR	25.29 EUR	+0.32 EUR
CER (Spotmarket)	0.20 EUR	0.20 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	61.69 USD	61.52 USD	-0.17 USD
EURO (Currency, Forex)	1.1080 USD	1.1165 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

Dear Sir or Madam,

On the last day of the G7 conference in Biarritz, France, climate protection is on the program. After the experience of the past with Mr Trump, it is no wonder that for the first time in the history of the summit, no joint final declaration is planned. All the more surprising is the news that the US President plans to enrich the host’s compulsory press conference this afternoon with his presence, which would also be a novelty.

The Senator of Vermont and presidential candidate for the Democrats 2020, on the other hand, presented a resolution on climate change last Thursday, setting out the goals and principles for the US fight against climate change. Unlike the incumbent president, Sanders recognizes that climate change is a major concern and that the United States must reduce its greenhouse gas emissions to zero by the middle of the century. As the news portal vox.com reported, most of the other presidential candidates have set the year 2050 as the target for carbon neutrality. Sanders’ plan, however, also sets an interim target: By 2030, transport and power generation, the two largest sources of emissions in the US, should be decarbonised, reducing US emissions by 71 percent. The plan also provides for the US to help developing countries reduce their emissions by 36 percent by 2030.

In the market for European Pollution Rights, the Bears also set the tone last week. Apparently under the impression of the further escalating trade dispute between the US and China, the price of oil has clearly given way and thus no turnaround could be initiated for EUAs. At the London ICE, a price of just under 25 euros was even called in the short term, which represents a nine-week low. The massive price increase in June and July was thus completely consumed. In today’s early trading, however, the market is clearly up and has already gained almost 50 cents.

(Average Quotes Exchange / OTC)
Instrument	16/08/2019	23/08/2019	Change
EUA (Spotmarket)	26.00 EUR	25.15 EUR	-0.85 EUR
EUA (December-2019-Future)	25.96 EUR	25.10 EUR	-0.86 EUR
CER (Spotmarket)	0.20 EUR	0.20 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	58.94 USD	58.20 USD	-0.74 USD
EURO (Currency, Forex)	1.1097 USD	1.1153 USD	+0.0056 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