Category: Carbon Market News

Dear Sir or Madam,

Actually the term is utter nonsense: climate protection. Nobody has to protect the climate, because the climate doesn’t care what it is like. Rather, it is about protecting the conditions for human life. The planet will adapt to the climate, that much is certain. Animal species will disappear and new, more resilient forms of life will emerge. No one can specifically predict whether human race will be sufficiently resistant to the climate catastrophe they have accelerated. But one thing is certain, however – extreme weather events will continue to increase in the future. In order to reduce the speed of climate change to an adaptable level, a swift global approach is essential.

US President Joe Biden recognized this in contrast to his predecessor, who had significantly lower cognitive abilities, and last week declared the “red alert”: “The country and the world are in danger. This is not an exaggeration. That’s a fact. “, said US President Joe Biden in view of the recurring devastating forest fires in California and Hurricane Ida. Accordingly, an additional $ 24 billion should now be considered in the budget. In Germany, too, the consequences of extreme weather events are increasingly costing money: the uninsured damage from the heavy rain catastrophe alone is estimated at 30 billion euros. And that’s just the interim balance for 2021.

Last week, the prices for European CO2 emission rights rose again significantly and on Wednesday marked a new all-time high at EUR 63.35 per EUA; accompanied by bullish energy prices. However, EUA rates came under pressure on Friday after the completion of Nord Stream 2 was confirmed and is set to deliver gas from Russia before the end of the year. As a result, some market participants took profits and the trading week closed at EUR 60.92 in the ICE December futures contract.

(Average Quotes Exchange / OTC)
Instrument	03.09.21	10.09.21	Change
EUA (Spot-Market)	61.23 EUR	60.89 EUR	-0.34 EUR
EUA (December-2021-Future)	61.32 EUR	60.92 EUR	-0.40 EUR
CER (Voluntary Spot-Market ø)	3.26 USD	3.26 USD	+0.00 USD
VER (Gold Standard Spotmarkt ø)	14.03 USD	14.03 USD	+0.00 USD
ICE Brent Crude Oil (Benchmark Future)	72.56 USD	73.42 USD	+0.86 USD
EURO (Currency, Forex)	1.1877 USD	1.1810 USD	-0.0067 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

Dear Sir or Madam,

Beatriz Yordi, Director of the European Commission for European and International CO2 Markets, commented at a video conference on the latest reform of the EU emissions trading system in relation to last week’s price increase, saying that the market is working and that a corresponding decarbonisation Send a signal to the economy. In addition, Yordi said that you have to stay calm at the current prices above 60 euros. Market intervention to lower prices is therefore currently unlikely, even if it would certainly find supporters in some EU countries.

The prices for CO2 emission rights jumped above the 60 euro mark for the first time in the last trading week and defended them until the end of the trading week. And this morning, too, the market opened with a clearly positive signal, having already exceeded the mark of 63 euros per EUA in early trading.

The prices were supported by increased gas prices, which gave corresponding signals out of concerns about the supply from Russia and the new Nord Stream 2 pipeline.

The fact that the normal volume of 11,418,000 EUA has been up for auction this week has not yet slowed the market down, but demand for the auctions should remain interesting.

(Average Quotes Exchange / OTC)
Instrument	27.08.21	06.09.21	Change
EUA (Spot-Market)	58.94 EUR	61.23 EUR	+2.29 EUR
EUA (December-2021-Future)	59.00 EUR	61.32 EUR	+2.32 EUR
CER (Voluntary Spot-Market ø)	3.26 USD	3.26 USD	+0.00 USD
VER (Gold Standard Spotmarkt ø)	14.03 USD	14.03 USD	+0.00 USD
ICE Brent Crude Oil (Benchmark Future)	72.59 USD	72.56 USD	-0.03 USD
EURO (Currency, Forex)	1.1795 USD	1.1877 USD	+0.0082 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

Dear Sir or Madam,

Last Friday, the European CO2 emission rights increased significantly and closed in a weekly comparison with a plus of 8.5% compared to the previous weekly closing price at 59.00 euros in the EUA December contract (ICE). A new all-time high was previously marked at 59.95 euros, but this has already been stopped at the beginning of the new trading week today, after the EUAs are currently quoted at well over 60 euros.

The prices were driven by the fact that during this trading week, due to the Bank Holiday and the EEX conference, only 5.6 million EUA will be auctioned on three days of the week. Speculators with a short-term orientation in particular managed to fuel the bull market.

The emission rights received further support from the rise in electricity and gas prices as well as the resurgent crude oil price, which rose in the Brent variety by a strong 11.6% on a weekly basis to 72.59 US dollars.

After oil reached a monthly low of just under 64.97 US dollars on August 20, 2021, it was above all high deliveries to India and the report on the explosion on an oil platform in the Gulf of Mexico, which is why the operator stopped the production of 125 oil wells stopped and produced 420,000 barrels less per day and production losses were also recorded in Russia.

It remains to be seen whether the 60 euro mark can be maintained this week, as the regular weekly auction volume of 11.4 million EUA will be offered again in the coming week.

(Average Quotes Exchange / OTC)
Instrument	20.08.21	27.08.21	Change
EUA (Spot-Market)	54.32 EUR	58.94 EUR	+4.62 EUR
EUA (December-2021-Future)	54.38 EUR	59.00 EUR	+4.62 EUR
CER (Voluntary Spot-Market ø)	3.26 USD	3.26 USD	+0.00 USD
VER (Gold Standard Spotmarkt ø)	14.03 USD	14.03 USD	+0.00 USD
ICE Brent Crude Oil (Benchmark Future)	65.03 USD	72.59 USD	+7.56 USD
EURO (Currency, Forex)	1.1698 USD	1.1795 USD	+0.0097 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

Dear Sir or Madam,

According to calculations by the Berlin think tank “Agora Energiewende”, this year Germany will experience the largest increase in greenhouse gas emissions in the last 30 years. The increase is expected to be 47 million tonnes compared to 2020, in total only 37% below the 1990 level.

According to the calculations by Agora Energiewende, the areas of buildings, transport and industry in particular will fail to meet the sector targets set out in the Climate Protection Act for 2021. “With the current increase, an immediate program with effective climate protection measures across all sectors is not only necessary, but also legally mandatory,” says Dr. Patrick Graichen, Director of Agora Energiewende. Failure to meet the sector targets obliges the implementation of an immediate program in accordance with the current climate protection law, which the new federal government must adopt within the first 100 days.

It can therefore be assumed that climate protection will be an important topic in the coming months even after the federal elections and will lead to the mandatory introduction of additional reduction measures, such as the introduction of a speed limit on German motorways, which at 130 km/h is around 2 million according to calculations by the German Federal Environment Agency would save.

Furthermore, additional measures in the promotion of climate-friendly buildings and the renovation of existing buildings could count.

In the past week, the prices for CO2 emission rights moved in a very volatile range of EUR 52.51 and EUR 58.28, influenced by the energy markets, which have moved significantly downwards due to renewed Corona worries, as shown in the example the price of Brent crude oil, which at the end of last week was $ 65, its lowest level since May.

This week the summer auction volume of 7,565,500 EUA will be offered again on the Leipzig EEX and in the coming week there will be two free days due to the Summer Bank Holiday on Monday and the meeting of the EEX Working Committee on Thursday, which is why only 5,631,000 EUA are offered. From calendar week 36, which begins on September 6, the regular 2021 auction volume of 11.4 million emission rights will start again.

(Average Quotes Exchange / OTC)
Instrument	13.08.21	20.08.21	Change
EUA (Spot-Market)	55.39 EUR	54.32 EUR	-1.07 EUR
EUA (December-2021-Future)	55.38 EUR	54.38 EUR	-1.00 EUR
CER (Voluntary Spot-Market ø)	2.66 USD	3.26 USD	+0.60 USD
VER (Gold Standard Spotmarkt ø)	14.99 USD	14.03 USD	-0.96 USD
ICE Brent Crude Oil (Benchmark Future)	70.14 USD	65.03 USD	-5.11 USD
EURO (Currency, Forex)	1.1796 USD	1.1698 USD	-0.0098 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

Dear Sir or Madam,

The current report of the Intergovernmental Panel on Climate Change has made it abundantly clear that every conceivable human effort must be made to curb carbon emissions. Those who are concerned about the economy and the financial future must first and foremost strive for the fastest possible climate neutrality. The radical rethinking that scientists have long been calling for is the basic requirement for radical changes in behavior – but we are finding it extremely difficult to do so.

The pricing of carbon is supposed to act here as both an incentive and a means of exerting pressure. However, current figures indicate that this alone will not be enough. After the price of the European pollution rights set course for the 60-euro mark at the beginning of July, there was a significant correction shortly afterwards, which caused the price to fall to 50 euros. Now, one could conclude that a carbon price at this level is still effective in terms of climate policy, which is basically true. However, at the same time, due to various circumstances, there was an unusual increase in the price of natural gas, so that the financial advantage in favor of gas-fired power generation no longer existed. According to calculations, the carbon price would have had to rise to 80 euros at times so that energy from coal firing no longer remained the cheaper option. Apart from that, it is of course also extremely important that, firstly, there is always more than enough natural gas available (because supply and demand regulate the price, and security of supply must also be guaranteed), and secondly, renewable energies and the necessary grids are being developed at full speed.

A thoroughly comparable effect can be observed on German roads. Despite all the warnings, the number of new SUV registrations continues to rise continuously – in the first half of 2021 alone, every fourth car newly registered in Germany was an SUV.

During the past trading week, the carbon market presented a mixed picture. After a quiet start, however, the price was able to overcome the 58 euro mark again on Wednesday, before profit-taking led to a correction in the direction of 55 euros. Currently, the market is starting the new trading week optimistically.

(Average Quotes Exchange / OTC)
Instrument	06.08.21	13.08.21	Change
EUA (Spot-Market)	56.65 EUR	55.39 EUR	-1.27 EUR
EUA (December-2021-Future)	56.66 EUR	55.38 EUR	-1.28 EUR
CER (Voluntary Spot-Market ø)	2.66 USD	2.66 USD	+0.00 USD
VER (Gold Standard Spotmarkt ø)	14.99 USD	14.99 USD	+0.00 USD
ICE Brent Crude Oil (Benchmark Future)	70.43 USD	70.14 USD	-0.29 USD
EURO (Currency, Forex)	1.1761 USD	1.1796 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