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

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

Emissions Trading / Carbon Market News (09/08/2021)

Dear Sir or Madam,

As of today, Monday, the first part of the Intergovernmental Panel on Climate Change’s (IPCC) new Assessment Report will be presented. The Assessment Reports of the IPCC serve as the authoritative basis for global climate policy and will also play a role at the UN Climate Change Conference in Glasgow in November.

The president of this climate summit is Alok Sharma, a not uncontroversial British politician who was also Minister for Business, Energy and Industrial Strategy until January this year and currently directly supports government work as a Minister of State in the Cabinet Office. Regarding the new assessment report, Sharma spoke at the weekend, according to media reports, of the most urgent warning against climate change to date. According to the report, it is based on scientific evidence that human behaviour is accelerating global warming at an alarming rate. Sharma is quoted as saying, “Every day, in one way or another, we will see a new record in the world.”

To confirm the accuracy of this statement, one only must look at the current news, in which there is not enough space left to comment on all the catastrophes that are currently taking place simultaneously and on all continents. Among the records mentioned by Sharma is the massive melting of the Greenland ice sheet. In combination with far too high temperatures, eight billion tonnes of ice melted in one day alone, so much that an area the size of Florida could be submerged by five centimetres.

Last week, the CO2 price completely decoupled from the oil price and instead dynamically continued its strong upward trend. Since the beginning of the week, the reduced auction volumes have applied on the EEX. Here, persistently high demand led to good auction results, which further boosted the price rise in the direction of the 57-euro mark.

Against this background of such carbon prices, it is not surprising that more and more Eastern European EU countries are also accelerating their plans to decommission coal-fired power plants. And the energy supplier Uniper also wants to shut down one of the four units of its British coal-fired power plant Ratcliffe as early as the end of September 2022 and completely decommission this plant two years later.

  (Average Quotes Exchange / OTC)   
Instrument30.07.2106.08.21Change
EUA (Spot-Market)53.31 EUR56.65 EUR+3.34 EUR
EUA (December-2021-Future)53.33 EUR56.66 EUR+3.33 EUR
CER (Voluntary Spot-Market ø)2.66 USD2.66 USD+0.00 USD
VER (Gold Standard Spotmarkt ø)14.99 USD14.99 USD+0.00 USD
ICE Brent Crude Oil (Benchmark Future)75.17 USD70.43 USD-4.74 USD
EURO (Currency, Forex)1.1869 USD1.1761 USD-0.0108 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

Emissions Trading / Carbon Market News (26/07/20021)

Dear Sir or Madam,

North Sea Brent oil hit a three-year high at $ 77.80 in early July and closed just below the $ 75 mark last week.

The recovering global economy and increasing demand are causing prices to rise, and important producers have only increased their production volumes insignificantly.

Now OPEC + could decide this week about a corresponding increase in production in August, as US crude oil inventories are also falling significantly.

Bank of America has now issued a price target of 100 dollars / barrel for the coming year, which can be attributed to the continued rise in demand.

The prices for EU CO2 emission rights have not benefited from the higher oil price and fell again by around two euros in the last week of trading compared to the previous week. The important mark of 50 euros still seems to be a significant support line here, as larger buy orders are repeatedly executed here.

But the halved auction volume in August could also influence pricing. This week, 15,091,500 EUAs will be auctioned for the last time on EEX, in August there will be only 7,546,500 EUAs per week.

  (Average Quotes Exchange / OTC)   
Instrument16.07.2123.07.21Change
EUA (Spot-Market)52.87 EUR50.88 EUR-1.99 EUR
EUA (December-2021-Future)52.96 EUR50.89 EUR-2.07 EUR
CER (Voluntary Spot-Market ø)2.66 USD2.66 USD+0.00 USD
VER (Gold Standard Spotmarkt ø)14.99 USD14.99 USD+0.00 USD
ICE Brent Crude Oil (Benchmark Future)73.20 USD74.11 USD+0.91 USD
EURO (Currency, Forex)1.1805 USD1.1770 USD-0.0035 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

Emissions Trading / Carbon Market News (07/06/2021)

Dear Sir or Madam,

Over the past 75 years, the aid organization Oxfam has become one of the largest emergency aid and development organizations and is active in 67 countries.

In the run-up to the G-7 meeting on Friday, she is now urgently warning to fight climate change. According to a study by the Swiss Re Institute, the G7 countries alone would also be affected financially, as in 2050 an average of 8.5% of annual economic output would be affected by the consequences of climate change. That would translate to $ 4.8 trillion in numbers.

In their calculations, the scientists at Swiss Re assume that if the countermeasures are insufficient, warming will rise by more than 2.6° C by 2050, which would reduce the gross domestic product of the G7 countries by 14%. If no further measures are successful, the warming could be 3° C by 2050 and the economies would shrink by 18%.

Emissions trading, which has achieved its goals in Europe in the past three trading periods, was unable to develop any bullish tendencies in the past week and lost another 2% compared to the previous week. The December future closed just below the 50 Euro mark despite the once again shortened trading week.

And the new week begins with technical problems. Due to the relocation of trading on the leading ICE exchange from Great Britain to the Netherlands, no valid prices are available at the moment, which is why, in addition to futures trading, the spot market has now been almost completely paralyzed. It is to be hoped that the ICE can solve these problems in a timely manner.

  (Average Quotes Exchange / OTC)   
Instrument21.05.2128.05.21Change
EUA (Spot-Market)51.29 EUR50.97 EUR-0.32 EUR
EUA (December-2021-Future)51.75 EUR51.03 EUR-0.72 EUR
CER (Voluntary Spot-Market ø)2.95 USD2.95 USD+0.00 USD
VER (Gold Standard Spotmarkt ø)14.52 USD14.52 USD+0.00 USD
ICE Brent Crude Oil (Benchmark Future)66.68 USD68.95 USD+2.27 USD
EURO (Currency, Forex)1.2178 USD1.2193 USD+0.0015 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. 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