Category: General

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

Dear Madam or Sir,

As part of the measures to overcome the Corona crisis, the German Federal Government is funding the purchase of purely electric cars with almost € 10,000, which makes the currently comparatively more expensive vehicles significantly more affordable.

The Federal Environment Agency now has a recently published study to counter critics who estimate the production and operation of an electric car to be more harmful to the climate based on old data. Even if you include all factors today, an electric car has a clear advantage over the entire life cycle. And by 2025, the carbon footprint of an electric car will again visibly decrease from 134 grams of CO2 to 101 grams of CO2, taking into account the production and usage load.

And if that is still not enough as a selling point – the Advantag fleet has been using fully electric drives since 2013 and has since reduced maintenance and maintenance costs to a fraction of vehicles with combustion engines.

Prices for CO2 emissions remained high last week, hitting a temporary high of EUR 25.75 on Wednesday before easing again at the end of the trading week.

(Average Quotes Exchange / OTC)
Instrument	19/06/2020	26/06/2020	Change
EUA (Spotmarket)	24.09 EUR	24.66 EUR	+0.57 EUR
EUA (December-2020-Future)	24.16 EUR	24.73 EUR	+0.57 EUR
CER (Spotmarket)	0.31 EUR	0.30 EUR	-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	41.95 USD	40.69 USD	-1.26 USD
EURO (Currency, Forex)	1.1174 USD	1.1215 USD	+0.0041 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,

April 2020 was the warmest April since weather records started in 1850. The scientists at “Berkeley Earth” are currently assuming that 2020 will be the warmest year so far in weather records.

At the end of last week, we also received good news from the Federal Environment Agency – the decrease in greenhouse gas emissions from German plants covered by mandatory emissions trading was an impressive 14% last year compared to the previous year.

The decisive point here was the control effect of the significantly increased price of CO2 certificates. Coal electricity had to make way for renewable energies more and more, which led to significant savings of 18% CO2 emissions in the past year compared to 2018.

The industry also saw a 4% decline to 119 million tons last year, which also applied to air traffic with only 9 million tons.

The overall decline in the EU was somewhat less, at around 9%, to 1.53 billion tons of CO2e, but the decline compared to 2005, at 36%, can be clearly seen across Europe and has thus already greatly exceeded the 21% saving target. The decline in emissions in the German area of ​​systems covered by emissions trading has so far been 30% compared to 2005.

Not least due to the effects of the corona pandemic, a significant decline in emissions is also to be expected this year, although special care must be taken in the coming years to ensure that there is no rebound in the event of a stronger increase in production. Effect is coming.

A sustainable orientation of the economy and the transport sector, which can be controlled through targeted tax and financial incentives, is therefore essential.

Last week, EUAs closed at the same level as the previous week. The auctions on EEX bring 13.9 million new EUAs to auction at four auctions on EEX in the shortened first week of June.

(Average Quotes Exchange / OTC)
Instrument	22/05/2020	29/05/2020	Change
EUA (Spotmarket)	21.32 EUR	21.31 EUR	-0.01 EUR
EUA (December-2020-Future)	21.40 EUR	21.40 EUR	+0.00 EUR
CER (Spotmarket)	0.30 EUR	0.32 EUR	+0.02 EUR
ICE Brent Crude Oil (Benchmark Future)	36.04 USD	37.57 USD	+1.53 USD
EURO (Currency, Forex)	1.0901 USD	1.1094 USD	+0.0193 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 Sirs and Madams,

Around 800 million tonnes of greenhouse gases were emitted in Germany in 2019, which corresponds to a 6.3% decrease compared to 2018, as the preliminary assessment by the Federal Environment Agency shows. This means a decrease of 35.7% compared to 1990.

The energy industry in particular contributed to this with a reduction of approx. 17%, which was mainly due to the lower use of coal due to the higher prices for emission rights, but also to the higher share of renewable energies.

In the transport and building sectors, on the other hand, there were increasing carbon emissions, not least due to the sales figures for high-performance motor vehicles and SUVs.

So far, the year of the financial and economic crisis 2009 was the year with the largest decrease in greenhouse gas emissions, which will now be followed by 2019.

How big the decline will be in 2020 cannot yet be estimated, since nobody can estimate with any certainty when the crisis mode will be released and the economy can pick up speed again. In addition, it is still completely uncertain how high the direct economic effects and their collateral damage will be.

This will also determine the prices for carbon emissions allowances in the coming weeks, which have shown a first bottoming in the past week. The extent to which this continues depends not least on political decisions taken at national and European level to alleviate the crisis in Europe.

(Average Quotes Exchange / OTC)
Instrument	27/03/2020	03/04/2020	Change
EUA (Spotmarket)	16.31 EUR	17,86 EUR	+1.55 EUR
EUA (December-2019-Future)	16.39 EUR	18,06 EUR	+1.67 EUR
CER (Spotmarket)	0.29 EUR	0,31 EUR	+0.02 EUR
ICE Brent Crude Oil (Benchmark Future)	28.15 USD	34,95 USD	+6.80 USD
EURO (Currency, Forex)	1.1169 USD	1,0802 USD	-0.0367 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