Category: General

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.

(Average Quotes Exchange / OTC)
Instrument	01/04/2021	09/04/2021	Change
EUA (Spot-Market)	42.43 EUR	43.56 EUR	+1.13 EUR
EUA (December-2021-Future)	42,47 EUR	43.64 EUR	+1.17 EUR
CER (Spot-Market)	0.63 EUR	0.60 EUR	-0.03 EUR
ICE Brent Crude Oil (Benchmark Future)	64.64 USD	63.02 USD	-1.62 USD
EURO (Currency, Forex)	1.1815 USD	1.1900 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,

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.

(Average Quotes Exchange / OTC)
Instrument	24/12/2020	31/12/2020	Change
EUA (Spot-Market)	32.02 EUR	32.54 EUR	+0.52 EUR
EUA (December-2021-Future)	32.19 EUR	32.72 EUR	+0.53 EUR
CER (Spot-Market)	0.40 EUR	0.37 EUR	-0.03 EUR
ICE Brent Crude Oil (Benchmark Future)	51.19 USD	51.42 USD	+0.23 USD
EURO (Currency, Forex)	1.2153 USD	1.2197 USD	+0.0044 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,

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.

(Average Quotes Exchange / OTC)
Instrument	18/12/2020	24/12/2020	Change
EUA (Spot-Market)	30.92 EUR	32.02 EUR	+1.10 EUR
EUA (December-2021-Future)	31.10 EUR	32.19 EUR	+1.09 EUR
CER (Spot-Market)	0.36 EUR	0.40 EUR	+0.04 EUR
ICE Brent Crude Oil (Benchmark Future)	52.26 USD	51.19 USD	-1.07 USD
EURO (Currency, Forex)	1.2255 USD	1.2153 USD	-0.0102 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,

At the end of this year 2020, which is characterized by many special challenges and experiences, we thank you for the good and trusting cooperation with you!

We wish you and your friends, family members, employees and colleagues a Merry Christmas and a good start into a hopefully healthy and successful New Year 2021!

This year, too, we don’t want to give away anything physical, but rather actively do something for climate protection in the interests of all of us by supporting climate protection projects.

Therefore, this year we carried out the voluntary offsetting of fifty tons of CO2 from the international climate protection project (CDM CN9084 in China), which prevents the emission of 468,720 tons of CO2 annually by reducing the emission of carbon dioxide during heat and energy generation in Yulin in the Shaanxi Province, significantly reduced and also improves the air quality in Yulin. This project is supported by Finland and Germany.

This increases the quality of life of the people in Shaanxi Province while at the same time improving climate protection.

Because one thing has also become apparent this year – the nations of the world are in a position to face global crises together. Therefore, the current pandemic gives us hope that the fight against climate change can also be successful and that we will use the year 2021 to start a more sustainable path for the future.

With Christmas greetings

Your ADVANTAG team

Dear Sir or Madam,

In the past week of trading, the news mostly triggered bullish price signals. On the one hand, there was further positive news regarding further vaccines that are about to be approved, on the other hand, the news that the UK and the EU are still moving towards a Brexit agreement spread optimism.

In addition, the EU announced that the first auctions of the new year 2021 and thus the new fourth trading period will probably be delayed by four weeks, the prices will also rise.

In the new trading week, only 14.4 million EUA will be auctioned on four trading days on the Leipzig EEX, followed by 20.8 million EUA in the next week.

(Average Quotes Exchange / OTC)
Instrument	13/11/2020	20/11/2020	Change
EUA (Spot-Market)	26.36 EUR	26.74 EUR	+0.38 EUR
EUA (December-2020-Future)	26.38 EUR	26.74 EUR	+0.36 EUR
CER (Spot-Market)	0.29 EUR	0.31 EUR	+0.02 EUR
ICE Brent Crude Oil (Benchmark Future)	42.70 USD	45.04 USD	+2.34 USD
EURO (Currency, Forex)	1.1834 USD	1.1854 USD	+0.0020 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