Category: General

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Emissions Trading / Carbon Market News (26/08/2019)

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

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Emissions Trading / Carbon Market News (22/07/2019)

Dear Sir or Madam,

The world’s most northerly weather station in the North of Canada experienced a very unusual heatwave last week, recording a record high of 21 ° C. The station is located at 82 degrees north latitude and is the northernmost permanently inhabited place on earth. This heat wave causes fires of unprecedented proportions to erupt in the Arctic.

The current data on the use of fossil fuels for power generation show how CO2 emissions trading serves climate protection. As a result of higher prices, 11.5 million tonnes of energy were produced in June 2019; in June 2018 it was still 17 million tons. This is particularly related to the fact that the rise in CO2 allowances has led to more than 60% increase in electricity produced by gas-fired power plants from 2.3 to 3.7 billion kilowatt hours.

According to the Fraunhofer Institute for Solar Energy Systems (ISE), the cost of generating lignite-fired power was 30-40 euros per megawatt-hour due to high CO2 prices, while electricity from gas-fired power plants is 24 – 28 euros. This is pleasing insofar as electricity from gas generates only half as much CO2 as is the case with lignite. The more expensive the CO2 certificates are, the less CO2 is emitted in power generation. At prices that would be well above the 30-euro mark, coal-fired power plants would be unprofitable and shut down for this reason alone. That would precede the coal exit in 2038.

Last week, the EUA continued to be bullish, peaking at EUR 29.50 at the beginning of the week. However, whether the 30-euro mark is to be tested depends on a strong market environment in the energy sector, with crude oil in particular currently weakening. At the start of the week, the EUA again rose above the 29 euro mark.

(Average Quotes Exchange / OTC)      
Instrument 12/07/2019 19/07/2019 Change
EUA (Spotmarket) 28.76 EUR 28.85 EUR +0.09 EUR
EUA (December-2019-Future) 28.79 EUR 28.89 EUR +0.10 EUR
CER (Spotmarket) 0.21 EUR 0.21 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 66.79 USD 62.52 USD -4.27 USD
EURO (Currency, Forex) 1.1269 USD 1.1220 USD -0.0049 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

Posted on

Emissions Trading / Carbon Market News (2019-03-05)

Dear Sir or Madam,

Three renowned researchers from the University of California, Professor Yangyang Xu, Professor Veerabhadran Ramanathan and Professor David G. Victor, have published an article in the journal Nature, which shows that the short – term consequences of climate change in particular are massively underestimated and that the Global warming is much faster than expected. They list three chains of evidence. First, in 2017 alone, CO2 emissions of 37 gigatonnes per year were estimated, leading to a global temperature increase of 0.25 to 0.32 ° C per decade over the next 25 years. On the other hand, the accelerated reduction of air pollution will help to warm the climate faster, as they can no longer reflect the sunlight. Furthermore, they see signs that the earth is approaching a natural warming phase that could last for several decades. These three effects reinforce each other and could lead to a warming of 1.5 ° C already in 2030. 2045 could already fall the 2 ° C mark. The scientists are therefore calling for new climate change priorities as well as strategies to adapt to their consequences.

CO2 allowances rebounded strong last week, after plunging sharply the week before. With an increase of 18%, they closed above the 22-euro mark in the last trading week. Also on Monday they continued the rally and left the mark of 23 euros behind. For the time being there is a major technical resistance in the area of 23.50 which needs to be overcome in order to remain bullish.

(Average Quotes Exchange / OTC)      
Instrument 2019-02-22 2019-03-01 Change
EUA (Spotmarket) 18.80 EUR 22.18 EUR +3.38 EUR
EUA (December-2019-Future) 18.94 EUR 22.28 EUR +3.34 EUR
CER (Spotmarket) 0.23 EUR 0.23 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 67.13 USD 64.99 USD -2.14 USD
EURO (Currency, Forex) 1.1338 USD 1.1364 USD +0.0026 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 or +44.20.79790283.

With kind regards,

Advantag Services GmbH

Posted on

Emissions Trading / Carbon Market News (2019-01-21)

Dear Sir or Madam,

The price of oil has risen sharply during the third consecutive trading week and has rallied around 9.00 USD a barrel during this period. In addition to the hope for a change of attitude in the trade dispute between the USA and China, a clear cut in production volumes from ??the OPEC countries pushed the price significantly up. Although some analysts forecast an even stronger price increase, some factors tend to argue against it. Thus, according to the abovementioned reduction in production, the total output is still well above the demand level and at the same time the USA has reported a record output of 11.9 million barrels per day.

While In June 2016, the relatively surprising outcome of the British referendum on leaving the European Union had triggered a huge drop in emissions allowances, this topic currently no longer plays a significant role. Neither the failed vote on the Brexit deal on Tuesday, nor the failed vote on the motion of no confidence against Theresa May, had a negative effect on the price performance of the EUAs.

Instead, the icy winter temperatures and the constantly rising oil prices pushed CO2 close to the 25 euro mark. Thus, even in the current trading week, it is unlikely that the political events in London and Brussels will affect the price of pollution rights.

(Average Quotes Exchange / OTC)      
Instrument 2019-01-11 2019-01-18 Change
EUA (Spotmarket) 22.59 EUR 24.83 EUR +2.24 EUR
EUA (December-2019-Future) 22.60 EUR 24.86 EUR +2.26 EUR
CER (Spotmarket) 0.24 EUR 0.24 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 60.40 USD 62.59 USD +2.19 USD
EURO (Currency, Forex) 1.1466 USD 1.1367 USD -0.0099 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 or +44.20.79790283.

With kind regards,

Advantag Services GmbH

Posted on

Emissions Trading / Carbon Market News (2018-01-14)

Dear Sir or Madam,

Since the beginning of November 2018, there has not been an auction for emission rights from German contingent at EEX, as the EU first had to confirm EEX as a platform for the auctioning of German certificates. As a result, 21,807,000 EUA less came on the market in the past year, which will now also be auctioned in the new year. At the end of last week, the Leipzig EEX was able to announce the current auction data for 2019.

Overall, Germany will auction on the EEX between 01.02.2019 and 13.12.2019 now 156,028,500 EUA. Regularly, 3,209,000 EUA from German contingents come weekly until July, taking into account the reduction of the Market Stability Reserve (MSR) for the weekly auction. The volume is halved in August and from September to mid-December the auction volume is 4,732,500 EUA.

As this was expected by most of the market participants, there was no particular reaction from the EUA course. In the past trading week, prices ranged between 21.18 and 23.26 euros per EUA; The weekly closing price was slightly lower than in the previous week and was at 22.59 Euro on the spot market, which was only one cent away from the December 2019 futures market contract.

(Average Quotes Exchange / OTC)      
Instrument 2019-01-04 2019-01-11 Change
EUA (Spotmarket) 23.49 EUR 22.59 EUR -0.90 EUR
EUA (December-2019-Future) 23.73 EUR 22.60 EUR -1.13 EUR
CER (Spotmarket) 0.24 EUR 0.24 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 57.07 USD 60.40 USD +3.53 USD
EURO (Currency, Forex) 1.1395 USD 1.1466 USD +0.0071 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 or +44.20.79790283.

With kind regards,

Advantag Services GmbH