Category: General

Dear Sir or Madam,

The past week can rightly go down in the history books as historic with regards to global climate protection.

Business leaders who have previously classified climate protection as a nuisance and unnecessary matter will in future have the same fate as fossil fuels.

Last Wednesday, the decision-makers of the European Union manifested the reduction target of 55% greenhouse gas reductions compared to 1990 and thus described the roadmap for the next 30 years.

In 2030, the EU should not emit more than 255 million tons of CO2 or its equivalent in other greenhouse gases.

In addition to the ambitious 2030 reduction target, the European Commission is also to set a further interim target in 2040 by 2024. The goal of reducing CO2 emissions by 95% in 2050 could also give way to a net-zero strategy in the future.

As if that hadn’t already been enough for a very good week for climate protection, US President Joe Biden announced at the end of last week at the virtual climate protection meeting he had called that the USA, as the second largest greenhouse gas emitter, should become climate neutral by the middle of the century.

UN Secretary General António Guterres also demanded that fossil fuels should be phased out by 2030 and that CO2 should be priced worldwide, and China’s head of state Xi Jinping and Russian President Vladimir Putin also showed their willingness to cooperate. If the foundation stone for an ambitious joint action against global warming has been laid here, April 2021 may be the time that sealed decarbonization.

One week before the end of the submission deadline for companies subject to EU emissions trading, our predictions were fulfilled and the price for European Allowances (EUA) reached a new all-time high of EUR 47.36 per ton of CO2.

Anyone who has speculated that the certificates will give way again is now mistaken and has to pay a significantly higher price to meet his tax obligation; the prices rose again a good 6% compared to the previous week.

Whether and when the speculators will begin to take profits cannot be precisely predicted, but the stock market is not a one-way street and speculators also tend to liquidate parts of their positions at a profit. The coming trading days will therefore remain exciting.

(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 CP2 are eligible in ETS until end of April 2021 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,

In January of this year, national emissions trading started in Germany to give the transport and real estate sector a price for CO2 emissions.

The figures show that this is necessary: ​​more than 2.2 billion tons of CO2 emissions are caused annually in these two sectors, which is around 50% more than in the sectors covered by European emissions trading system EU ETS.

For this reason, the European Commission is now examining the possibility of including these two sectors in the EU emissions trading scheme. In order to stay in line with the EU’s 2050 emission reduction targets for these sectors, a price of EUR 250.00 per ton would be required, as experts from the information service provider ICIS published last week.

There are currently several options for EU-wide pricing of these sectors up for debate; Among other things, a separate European cap-and-trade mechanism, which is initially decoupled from the existing EU ETS, or a step-by-step system with a specified price corridor, as in Germany, where pricing this year starts at 25 euros per ton and a price range of 55 euros from 2026 -65 euros per ton.

Whichever regulation the EU chooses – there are increasing signs that greenhouse gas emissions from fossil fuels and fuels will be priced across Europe in the not too distant future.

The prices for CO2 emissions in the sectors already covered, such as power generation, intra-European flights and heavy industry, continued to develop bullish over the past week. On Tuesday, the December benchmark contract reached a new all-time high of EUR 44.35 per EUA, even if the rest of the week was a little weaker.

It would be astonishing if the prices fell significantly before the end of the submission period in the trading week after next.

(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,

First of all, we don’t want to fail to wish you a happy new year.

From the point of view of the markets, the past year was positive despite the corona pandemic and its negative consequences for the global economy. Not only did the DAX record an all-time high shortly before the end of the year, the prices for CO2 emission rights also reached their highest level for the December 2021 future of EUR 33.50 per EUA on December 28, 2020.

At the end of the year, the no-deal Brexit, which was prevented just in time, was a strong price driver. In addition, Donald Trump has now signed the US economic stimulus package, which is why the prices so far see no reason for a correction in the new year.

But as we all know, the stock market is not a one-way street and corrections are necessary and good in both the financial markets and the commodity markets. The only question is when this will happen and how quickly the bullish sentiment will then turn, which could be caused solely by negative reports regarding new or more extensive lockdowns in the leading industrial nations.

The prices for emission rights also start with a significant plus on the first trading day in the new year, which, in addition to the current positive view of the market participants, is also due to the fact that the first auction of EUAs in 2021 will not take place until Friday, January 29th, 2021 Leipzig EEX is carried out. On this day, 2,651,000 EUAs of the new trading period will be auctioned, which, however, cannot be used to meet the surrender obligation for 2020. In the first week of February, 15.1 million EUA will be auctioned.

Please also note that the Union Registry will not be accessible until January 7th, 2021, 10:00 a.m. due to a software update and therefore no transactions can be carried out.

(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,

No no-deal Brexit after all! Literally at the last moment on Christmas Eve, Brussels and London have reached an agreement on the relationship between the UK and the EU. This answers the many hitherto unanswered questions on trade and other important issues in dealing with each other. Only the coming months will show how the more than 1000 pages of rules will work out in practice. But the news itself was understandably greeted with great relief, because any agreement would have been better than none.

Another major topic last week was the start of vaccination in Europe, after the first product against the Corona virus was also approved by the EU. The vaccine should and will now gradually be made available to the different population groups.

Against the background of this positive news, the price of emission certificates rose sharply again at the end of the last trading week and left the 30-euro mark clearly behind. In today’s early trading, the mark of 33 euros was even overcome, although here we are still talking about EUAs of the third trading period. It is not until 29 January that the EU begins auctioning allowances from the new trading period, allowances that can then be used for the first time at the beginning of 2022 for the compliance obligation. EUAs from the third trading period will remain valid indefinitely. However, it is to be expected that with the start of the new auctions until 30.04.21, i.e. the end of the 2020 compliance period, two different prices will come into effect, as it is known that only allowances from the third trading period can be used for this compliance period.

(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