Category: General

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

Dear Sir or Madam,

the chairman of the German CSU, Markus Söder, has called for an end to vehicles with internal combustion engines in Germany from 2035. With this, he joins the ranks of those in favor of a clear end date for vehicles with gasoline or diesel engines. However, these vehicles currently still account for 97.6% of vehicles in Germany and many of these combustion engines will probably continue to be driven even after a possible ban on new registrations in 2035, insofar as the CO2 pricing in this sector does not have a clear control effect would.

A lack of price-driving news last week led to a further weekly price drop of 6.5% in European emission rights. The EUA closed just above the € 26 mark, with the energy sector, with the exception of gas, also falling.

This week, 14.4 million EUA will be auctioned on four days in Leipzig. In the coming week there will be 21.6 million CO2 certificates, including 769,000 emission rights for aviation on Wednesday, October 7, 2020.

(Average Quotes Exchange / OTC)
Instrument	18/09/2020	18/09/2020	Change
EUA (Spot-Market)	27.98 EUR	26.15 EUR	-1.83 EUR
EUA (December-2020-Future)	27.99 EUR	26.17 EUR	-1.82 EUR
CER (Spot-Market)	0.31 EUR	0.30 EUR	-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	42.98 USD	41.84 USD	-1.14 USD
EURO (Currency, Forex)	1.1837 USD	1.1631 USD	-0.0206 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 Madam or Sir,

Traders and analysts still rub their eyes when they look at the price development on the CO2 market since the end of June. After the price for European pollution rights on the London ICE passed the 29-euro mark in no time at the beginning of the last trading week, the all-time high on Tuesday came within reach. Now one could have expected a price around 30 euros – but only towards the end of the year and above all without the influence of a pandemic. The suspicion that the CO2 market was being artificially driven up by speculative traders, for example by hedge funds, quickly became more and more widespread, which is why some states apparently brought new regulations such as price caps to curb speculation into discussion. In fact, the price then left its unstoppable upward trend, albeit without a clear correction. Since then, the price has oscillated in a broad corridor, but at the end of the week it moved up again significantly. Even if a high CO2 price is indeed the declared goal of the European Trading System, such an influence by extraneous speculators can of course not be desired.

Meanwhile, last week, the EU adopted rules for the so-called modernisation fund, which is intended to promote investment in the modernisation of the energy sector in general and energy efficiency in lower-income Member States. The fund will be endowed with EUR 14 billion from ETS revenues.

A look at the start of the new trading week reveals a significantly strengthened CO2 price, which seems to be heading for its all-time high again.

(Average Quotes Exchange / OTC)
Instrument	03/07/2020	10/07/2020	Change
EUA (Spotmarket)	27.89 EUR	28.96 EUR	+1.07 EUR
EUA (December-2020-Future)	27.96 EUR	29.02 EUR	+1.06 EUR
CER (Spotmarket)	0.27 EUR	0.28 EUR	+0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	42.78 USD	43.20 USD	+0.42 USD
EURO (Currency, Forex)	1.1245 USD	1.1305 USD	+0.0006 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