Category: Carbon Market News

Dear Sir or Madam,

It is always good news when the mechanisms used for climate protection are effective.

At the end of last week, the German Federal Environment Agency published facts and figures that prove that the plants included in emissions trading have reduced their greenhouse gas emissions by 33% since 2013.

Last year, the 1,817 stationary systems in Germany recorded in the European Emissions Trading System (EU-ETS) emitted around 320 million tons of carbon dioxide equivalents, which corresponds to a decrease of 12 percent compared to 2019, and even 33% compared to 2013. The energy industry, which is increasingly relying on renewable energies and is also more likely to convert gas than coal into electricity, has contributed to this, as the CO2 emissions per kilowatt hour are significantly lower here. In 2020, emissions from German energy systems fell by around 15 compared to the previous year.

Emissions also fell in industry in 2020, although the effects of the corona pandemic must be taken into account. Here emissions fell by 5% to 114 million tons of CO2e compared to the previous year. Accordingly, further activities are necessary to manifest this sustainably in the post-pandemic era.

In air traffic there was a significant decrease of 58% compared to 2019; here approx. 4 million tons of CO2 could be saved. It is to be hoped that the industry will be more climate-friendly in the future and that more climate-friendly fuels, which are also environmentally friendly, will be developed and used in the future. At least the successful use of video conferences and virtual general meetings should make a recognizable part of the flights of the past obsolete.

Emissions from aviation: The emissions of the aircraft operators managed by Germany amounted to around 4 million tons of carbon dioxide in 2020. This corresponds to a decrease of 58 percent compared to the previous year. This is due to the sharp decline in flights as a result of the Covid-19 pandemic.

Throughout the EU, the emissions of all plants participating in the EU ETS fell by 11% in 2020 compared to the previous year, and in energy generation by as much as 15%. Compared to 2005, the decrease in emissions from the corresponding plants was as much as 43%, which means that emissions trading achieves the intended steering effect with market-based means.

Last week, trading in European emission rights showed itself in a slightly downward wavy line and closed comfortably above the 50 Euro line at 51.80.

(Average Quotes Exchange / OTC)
Instrument	11.06.21	18.06.21	Change
EUA (Spot-Market)	52.74 EUR	51.80 EUR	-0.94 EUR
EUA (December-2021-Future)	52.67 EUR	51.90 EUR	-0.77 EUR
CER (Voluntary Spot-Market ø)	3.02 USD	3.02 USD	+0.00 USD
VER (Gold Standard Spotmarkt ø)	15.86 USD	15.86 USD	+0.00 USD
ICE Brent Crude Oil (Benchmark Future)	72.58 USD	73.23 USD	+0.65 USD
EURO (Currency, Forex)	1.2107 USD	1.1862 USD	-0.0245 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. 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,

A report published last week once more commented critically on the practice of allocating free pollution rights to energy-intensive companies. This subsidy should protect domestic industries from disadvantages in global competition and prevent certain companies from relocating their production sites to countries where no CO2 tax is levied (carbon leakage).

It has long been criticized that as a result of these allocations, which at least initially fully covered the expected emission volumes, companies would be deprived of a significant incentive to improve their carbon footprint. In fact, emissions in these sectors have stagnated since the beginning of the third trading period in 2013, while significant reductions can be observed in sectors without these allocations.

It is obvious that state economic interests and climate protection are massively in each other’s way here and that those responsible must undoubtedly focus on this problem quickly and consistently in the sense of the proclaimed climate goals.

Irrespective of this, an absurd loophole in the system should be closed immediately. The EUAs allocated free of charge are not subject to any earmarking, which means that companies are free to convert surplus allowances into special revenues on the market. If free allocations exceed actual CO2 emissions, they should be usable for future years, but in no case saleable. While other companies must invest in sustainable, more environmentally friendly technologies in order to free themselves from the increasing financial burden of the CO2 levies, the companies receiving the gift can even cash in on the excess allowances. This cannot be the idea.

The technical problems in connection with the relocation of the ICE exchange from the UK to the Netherlands massively hindered trading during Monday, but the price nevertheless showed a strong recovery at the end of the day. The bullish trend continued in the following period and brought the price back to the level of the end of May, compensating the losses suffered until then. Only on the last trading day of the week the trend lost its momentum, but still closed with a plus of EUR 2.70.

(Average Quotes Exchange / OTC)
Instrument	04.06.21	11.06.21	Change
EUA (Spot-Market)	50.02 EUR	52.74 EUR	+2.72 EUR
EUA (December-2021-Future)	49.97 EUR	52.67 EUR	+2.70 EUR
CER (Voluntary Spot-Market ø)	2.95 USD	3.02 USD	+0.07 USD
VER (Gold Standard Spotmarkt ø)	14.52 USD	15.86 USD	+1.34 USD
ICE Brent Crude Oil (Benchmark Future)	71.62 USD	72.58 USD	+2.67 USD
EURO (Currency, Forex)	1.2165 USD	1.2107 USD	-0.0058 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. 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 Germany, the subject of hydrogen seems to be gaining ever greater importance for the future of industry and mobility.

This may certainly be justified in some areas of application, insofar as it is produced with the help of renewable energies, which of course also applies to all other alternatives to fossil fuels.

In electromobility, on the other hand, the use of hydrogen must be viewed critically. Significant energy has to be used to produce hydrogen. On closer inspection, this is problematic both economically and ecologically.

Last week, Greenpeace showed that you can cover 30 kilometers with a hydrogen-powered fuel cell vehicle with an amount of energy of 25 KWh. With a purely electrically powered vehicle, on the other hand, it is 110 kilometers, almost four times the distance.

With the synthetically produced fuels, the energy balance looks even worse, with 25 KWh of energy they would only travel 20 kilometers.

And this is another problem, especially for oil companies like Shell, because last week the oil company had to swallow a bitter pill as the district court in The Hague ruled that it would reduce its CO2 emissions and those of its suppliers by 45% by 2030. has to reduce.

The age of fossil energy generation is coming to an end in great strides.

In the past week, prices began to form a new floor above the € 50 mark after the previous week’s price correction unsettled the bulls. It can be assumed that the market will move with a greater range of fluctuation in the trading week that has been shortened due to today’s “Spring Bank Holiday”.

(Average Quotes Exchange / OTC)
Instrument	21.05.21	28.05.21	Change
EUA (Spot-Market)	51.29 EUR	50.97 EUR	-0.32 EUR
EUA (December-2021-Future)	51.75 EUR	51.03 EUR	-0.72 EUR
CER (Voluntary Spot-Market ø)	2.95 USD	2.95 USD	+0.00 USD
VER (Gold Standard Spotmarkt ø)	14.52 USD	14.52 USD	+0.00 USD
ICE Brent Crude Oil (Benchmark Future)	66.68 USD	68.95 USD	+2.27 USD
EURO (Currency, Forex)	1.2178 USD	1.2193 USD	+0.0015 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. 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 beginning of last week the International Energy Agency (IEA) called for the immediate termination of the development of new oil, gas and coal reserves in order to prevent a further dangerous rise in global warming. To this end, it presented a roadmap that aims to achieve global climate neutrality by the middle of the century.

This is a strong turnaround, as the IEA has so far campaigned to secure the global supply of oil and other fossil fuels, thus demonstrating the urgency of immediate action all the more clearly.

Furthermore, the IEA is calling for vehicles with internal combustion engines to no longer be permitted from 2035, for the rapid global expansion of renewable energies to be promoted and, at the same time, for fossil fuels to be increasingly left in the ground.

Meanwhile, the Greens in the EU Parliament are also leading the way and are demanding a lower price limit of 50 euros for the negotiations beginning in July on further reforms of the EU emissions trading EU ETS, around the price to 150 euros by the end of this decade and to 195 euros in the mid-30s To raise euros. This means that coal can be phased out as early as 2030, like the green German MEP Michael Bloss told.

There are also considerations to increase the annual reduction factor from the current 2.2% to 5.8% and to set maximum position limits with a view to speculators. An expansion to the transport and real estate sector, on the other hand, is viewed critically in order not to burden citizens too much. Here, however, the German national emissions trading should serve as a model and possibly be introduced across the EU.

Last Tuesday the time had come – the market for EUAs made the correction we had long expected and fell by almost eight euros or a good 14% by Wednesday, which happened at the same time as the start of the British emissions trading system. On Thursday, however, the prices closed again at a stable level well above the 50 euro mark and on Friday the trading week ended with a price of 51.29 euros on the spot market.

Due to Whit Monday and the bank holiday on May 31, only 11.8 million EUA each will be auctioned on the Leipzig EEX in the next two weeks. That is 3.3 million shares per week less than is currently offered in a normal trading week and could provide further bullish impulses.

(Average Quotes Exchange / OTC)
Instrument	14.05.21	14.05.21	Change
EUA (Spot-Market)	56.65 EUR	51.29 EUR	-5.36 EUR
EUA (December-2021-Future)	56.65 EUR	51.75 EUR	-4.90 EUR
CER (Voluntary Spot-Market ø)	1.87 USD	2.95 USD	+1.08 USD
VER (Gold Standard Spotmarkt ø)	13.71 USD	14.52 USD	+0.81 USD
ICE Brent Crude Oil (Benchmark Future)	68.72 USD	66.68 USD	-2.04 USD
EURO (Currency, Forex)	1.2082 USD	1.2178 USD	+0.0096 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. 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 Federal Constitutional Court had requested the amendment, and the Federal Cabinet delivered at a truly sporting speed and passed the amendment to the Climate Protection Act last Wednesday. The corrections are primarily intended to distribute the climate protection efforts until 2045 more fairly between current and future generations.

More committed climate protection targets are to be welcomed, and it is not only the younger generation that is aptly calling for consistent changes to achieve the containment of global warming agreed by the global community in Paris. Clearly defined targets on the part of government decision-makers are the first decisive step.

But of course, it is comparatively easy to set a goal of losing fifteen kilograms of overweight instead of ten.  Much more difficult, however, are the subsequent efforts to change one’s diet and get plenty of exercise. It is the same with climate protection goals – all parts of society must make an appropriate but resolute contribution to achieving the goals.

There is no doubt that the avoidance of fossil fuels is a core area of necessary action, and the price of greenhouse gas emissions plays a crucial role in this. Here, during the past trading week, the EUA’s continued their already spectacular rally even more spectacularly. Despite a short-term setback on Thursday, the price rose by more than EUR 6.00. In the past six months, EUA has thus gained around 150 per cent – a fact that can be explained above all by the strategy of investors, who seem to have no interest in short-term profit-taking.

(Average Quotes Exchange / OTC)
Instrument	07.05.21	14.05.21	Veränderung
EUA (Spot-Market)	50.45 EUR	56.45 EUR	+6.20 EUR
EUA (December-2021-Future)	50.45 EUR	56.65 EUR	+6.20 EUR
CER (Voluntary Spot-Market ø)	1.87 USD	1.87 USD	+0.00 USD
VER (Gold Standard Spotmarkt ø)	13.71 USD	13.71 USD	+0.00 USD
ICE Brent Crude Oil (Benchmark Future)	68.21 USD	68.72 USD	+0.51 USD
EURO (Currency, Forex)	1.2163 USD	1.2082 USD	-0.0081 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. 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