Category: Carbon Market News

Dear Sir or Madam,

Joe Biden took office in Washington last week and one of his first acts was to initiate the United States’ return to the Paris Agreement and to sign a letter to that effect to the United Nations. If the letter of accession is accepted, the US will officially rejoin the agreement 30 days later.

Nobody less than former US Secretary of State John Kerry has been appointed as special envoy for climate protection in the United States’ national security council. Furthermore, President Joe Biden has instructed his government employees to identify all decisions made by the Donald Trump administration to the detriment of environmental and climate protection and to initiate appropriate countermeasures.

Last week, the bulls again set the tone on the market for European CO2 emission rights and caused prices to rise by almost 8% compared to the bearish previous week. On Friday this Week the first auction of EUAs from the new trading period takes place. At the Leipzig EEX, 2,651,000 EUAs from the German contingent will be offered for auction; in the following 5th calendar week of the year there are then a total of 15,091,500 emission certificates.

When purchasing emission rights to meet the compliance obligation for 2020, please ensure that the EUAs for the new trading period cannot be used for 2020 and discuss your needs with your trader, who will transfer the required certificates to you. In the newly designed Union Registry you will then see which trading period the EUAs are to be assigned to.

(Average Quotes Exchange / OTC)
Instrument	15/01/2021	22/01/2021	Change
EUA (Spot-Market)	31.64 EUR	34.15 EUR	+2.51 EUR
EUA (December-2021-Future)	31.74 EUR	34.24 EUR	+2.50 EUR
CER (Spot-Market)	0.36 EUR	0.36 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	54.86 USD	55.18 USD	+0.32 USD
EURO (Currency, Forex)	1.2078 USD	1.2173 USD	+0.0095 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,

in Germany this week there are signs of a tightening of the lockdown and in the USA the transfer of power from Donald Trump to the new US President Joe Biden is to take place.

Since the newest uncertainties due to the state of mind of Donald Trump and his partly militant supporters, the financial and commodity markets have initially shifted into reverse gear and numerous investors have taken profits, which naturally leads to easier prices.

It is still uncertain to what extent the German prime ministers of the individual federal states will be able to agree on further tightening of the lockdown on Tuesday, but an extensive home office obligation and the obligation to wear FFP2 masks could come, with further effects on the economy and thus the stock and commodity exchanges events are feared.

In addition, milder temperatures are arriving in Central Europe this week, which in turn reduces CO2 emissions for heat energy generation.

All in all, these are apparently enough facts to allow both the German DAX and the CO2 emission allowances to start the new trading week with losses.

(Average Quotes Exchange / OTC)
Instrument	08/01/2021	15/01/2021	Change
EUA (Spot-Market)	34.80 EUR	31.64 EUR	-3.16 EUR
EUA (December-2021-Future)	34.92 EUR	31.74 EUR	-3.18 EUR
CER (Spot-Market)	0.37 EUR	0.36 EUR	-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	56.18 USD	54.86 USD	-1.32 USD
EURO (Currency, Forex)	1.2212 USD	1.2078 USD	-0.0134 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,

By January 7th, 2021, the software of the Union Registry was subjected to a major update and is now available again for users. Anyone who has logged in since then will see information on the home page that transactions for the EU 100 accounts with system operators can only be carried out with trust accounts based on the dual control principle, and with trading accounts and earlier personal accounts only dual control-Principle to both trust and non-trust accounts. Most account holders have done this in the past.

Another novelty with the accounts is that you can already use EUA on this subpage. EUAA, CHU and CHUA can select. It should be of particular interest, however, that it is now divided into which trading period the EUA or EUAA are as soon as one selects an account. As already mentioned a few weeks ago, the emission rights of the fourth trading period, which will be auctioned from January 29, 2021, cannot be used for the compliance for 2020. When purchasing emission rights for the last year, you should pay attention to this information.

In the past week, not only did the DAX reach a new all-time high of over 14,000 points, the CO2 emission rights also set a new high at 35.20 euros in the December future. There were, of course, reasons for this – optimistic financial markets and below-average temperatures in Europe as well as a generally stronger energy complex further reinforced the bullish tendency. The EUA start the new week a little easier.

(Average Quotes Exchange / OTC)
Instrument	31/12/2020	08/01/2021	Change
EUA (Spot-Market)	32.54 EUR	34.80 EUR	+2.26 EUR
EUA (December-2021-Future)	32.72 EUR	34.92 EUR	+2.20 EUR
CER (Spot-Market)	0.37 EUR	0.37 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	51.42 USD	56.18 USD	+4.76 USD
EURO (Currency, Forex)	1.2197 USD	1.2212 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. 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,

a mutation of the Covid-19 virus has occurred in Great Britain, which is why the British government is trying to seal off the clusters. In addition, France has closed the Eurotunnel and both Germany and Austria have imposed entry stops on aircraft from the island.

This is likely to affect the British economically even before a very likely hard Brexit. However, this is not only associated with economic uncertainties for the British in the coming weeks, but is also likely to have a negative impact on the EU financial markets in the remaining trading days of the end of 2020.

Starting next year, Great Britain will no longer participate in the European emissions trading system EUETS. After both a CO2 tax and emissions trading were up for grabs, the government has now decided on its own CO2 trading system. There will be a minimum price of GBP 15 per ton in the UK ETS and the CO2 certificates will be auctioned on the London ICE as usual.

The affected sectors in Great Britain are now to be reduced by 24% from 155 million tonnes in the coming year to 117.5 million tonnes of CO2e in 2030 using the cap-and-trade mechanism.

However, it is unclear whether the British emissions trading system should be linked to the EU ETS in a similar way to the Swiss emissions trading system and will certainly depend on the outcome of the extended Brexit negotiations.

Last week, the prices for EU emission rights showed a new all-time high of EUR 32.50 per EUA for the high-volume December 2021 contract and the trading week also ended with a visible plus, which in addition to higher energy prices also came with the end of the auctions related.

The ongoing uncertainties regarding the Brexit negotiations and the further development of the pandemic as well as the new British virus mutation will certainly continue to affect trade in the Christmas week. The new week therefore started with a clear minus of more than 3% and some speculators could also use this to take profits.

(Average Quotes Exchange / OTC)
Instrument	11/12/2020	18/12/2020	Change
EUA (Spot-Market)	30.48 EUR	30.92 EUR	+0.44 EUR
EUA (December-2021-Future)	30.52 EUR	31.10 EUR	+0.58 EUR
CER (Spot-Market)	0.31 EUR	0.36 EUR	+0.05 EUR
ICE Brent Crude Oil (Benchmark Future)	49.96 USD	52.26 USD	+2.30 USD
EURO (Currency, Forex)	1.2108 USD	1.2255 USD	+0.0147 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,

In September the European Commission proposed that greenhouse gas emissions in the EU should be reduced by at least 55 percent by 2030 compared to 1990 levels. The previous goal was 40 percent. The new target was based on a comprehensive impact assessment of the social, economic and environmental impacts. This showed that 55 percent fewer emissions are realistic and feasible. The new climate target is now intended to help support Europe’s economic recovery from the coronavirus pandemic.

Even if critics do not go far enough, the European Union has set a milestone with today’s decision and has ended the use of fossil fuels for energy generation in the medium term.

And yes, it would be naive to call for further reductions, because the necessary transformation of society in the post-corona society of Europe will already unsettle quite a few people and without the willingness of the masses to implement any plan, however good it may be, would fail miserably . One only has to think of the cheap populists who are already in the starting blocks to classify climate change as an ideology and to present scientific evidence as unproven despite the greatest possible international consensus.

It was by no means a matter of course that an agreement could take place at EU level, it required a lot of debates and culminated in a night of negotiations, since every EU nation naturally pursues its own interests and still has to be taken along. The German Chancellor Angela Merkel and the French President Emanuel Macron were among the most important supporters, who ultimately prevailed.

As with all urgent EU decisions, a very significant point was the question of funding. Here, the EU fund with 750 million is intended to pave the way to a more sustainable and European economy.

In the run-up to this decision, the market for European CO2 emission rights has positioned itself clearly bullish and set an exclamation mark on Friday last week with an all-time high of 31.30 euros per EUA and this was already exceeded again in today’s early trading.

The market also sees the fact that the Brexit negotiations, which should be concluded by yesterday, are being extended as positive. Only the renewed lockdown in Germany and the failure of the Brexit negotiations are among the factors this week that could put a stop to the bullish market events.

Today, Monday, the last 3,959,500 EUAs for this year will be auctioned at the Leipzig EEX.

(Average Quotes Exchange / OTC)
Instrument	04/11/2020	11/12/2020	Change
EUA (Spot-Market)	30.11 EUR	30.48 EUR	+0.37 EUR
EUA (December-2020-Future)	30.11 EUR	30.52 EUR	+0.41 EUR
CER (Spot-Market)	0.30 EUR	0.31 EUR	+0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	49.06 USD	49.96 USD	+0.90 USD
EURO (Currency, Forex)	1.2122 USD	1.2108 USD	-0.0014 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