Category: Carbon Market News

Dear Sir or Madam,

Just 40 years ago, the first World Climate Conference took place in Geneva (Switzerland), due to increased environmental awareness in the 1970s. The accelerated industrialization in many parts of the world has already had its first effects; the ozone hole was recognized as well as the forest dying. The Club of Rome published in 1972 with the book “The limits of growth” a work that addressed the problems of using fossil fuels for the atmosphere.

At the end of the 1970s, climate research began, which obtained reliable data through the use of weather satellites. At the same time, data from the now world-famous greenhouse gas monitoring station in Hawaii could be used, which measures the CO2 content in the air at 4,150 meters above sea level at the volcano Mauna Loa. In 1958, this showed a value of just over 300 ppm (parts per million) measured. At the World Climate Conference in 1979, it was already 335 ppm and currently the CO2 concentration is already over 400 ppm. And as knowledge and global temperature increased, scientists became increasingly aware of the link between CO2 emissions and climate change.

Knowledge is therefore not lacking for humanity, but rather for transforming knowledge into appropriate action. Although the introduction of European CO2 emissions trading in 2005 arose out of this, the decarbonization of global industry is proceeding too slowly from the point of view of many scientists. Not least, the topic is present in the population, but hardly anyone really does something for climate protection; The number of air travel continues to increase, as does the number of licensed SUVs or the consumption of low-quality assets in the industrialized nations. And politics does not want to be unpopular with fiscal controls, fearing protests like those in France, which could endanger the next election.

The extension of CO2 emissions trading to other sectors and countries, as well as a high price for direct and indirect greenhouse gas emissions, could take on even more of these necessary control effects. But the price of CO2 emission rights is still too low, even if it has increased significantly in the past twelve months.

In the past trading week, these traded in the range between EUR 21.34 and EUR 24.18 and closed with a plus of 40 cents compared to the previous week at EUR 22.20 in the spot market. Due to the limited application possibilities and the high market offer, the CER also lost another cent and fell to 22 cents on average.

(Average Quotes Exchange / OTC)
Instrument	2019-02-01	2019-02-08	Change
EUA (Spotmarket)	21.80 EUR	22.20 EUR	+0.40 EUR
EUA (December-2019-Future)	21.99 EUR	22.37 EUR	+0.38 EUR
CER (Spotmarket)	0.23 EUR	0.22 EUR	-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	62.74 USD	62.00 USD	-0.74 USD
EURO (Currency, Forex)	1.1455 USD	1.1321 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 or +44.20.79790283.

With kind regards,

Advantag Services GmbH

Dear Sir or Madam,

In the past year, the most important North German network operator exceeded for the first time the billions in terms of the costs that were necessary to ensure grid stability. Tennet estimates the costs, which ultimately end up on the electricity bills of end consumers in Germany, at 1.03 billion euros. In 2017, it had also been close to one billion euros due to the windy weather. In 2016, the amount of 660 million euros was still significantly lower due to less wind. In 2015, Tennet reported 710 million euros. Together with the other network operators, the cost of network stabilization in 2017 was 1.4 billion euros. It can be assumed that this amount was not undercut in the past year either. It is therefore right and important that the German Minister for Economic Affairs and Energy, Peter Altmeier, wants to promote the development of power lines as quickly as possible.

Last Friday, the first German auction was held this year, in which 3,209,000 EUAs were auctioned at the EEX in Leipzig. A total of 15,122,500 EUAs were auctioned last week. Compared to the previous week, in which only the auctions of the EU were carried out and thus only 7,485,000 new EUAs came on the market, this was a doubling, which has put the prices of European emission rights under pressure. On a weekly basis, these lost 8.2% and closed at 21.80 euros on the spot market. There will be no Polish auction this week, which means that the auction volume will be lower again with a total of 10,694,000 EUA. The Polish auction always takes place every two weeks and usually includes 4,428,500 EUAs in a primary market auction.

(Average Quotes Exchange / OTC)
Instrument	2019-01-25	2019-02-01	Change
EUA (Spotmarket)	23.76 EUR	21.80 EUR	-1.96 EUR
EUA (December-2019-Future)	23.93 EUR	21.99 EUR	-1.94 EUR
CER (Spotmarket)	0.24 EUR	0.23 EUR	-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	61.66 USD	62.74 USD	+1.08 USD
EURO (Currency, Forex)	1.1404 USD	1.1455 USD	+0.0051 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 or +44.20.79790283.

With kind regards,

Advantag Services GmbH

Dear Sir or Madam,

In 2017, Germany emitted a total of 906.6 million tonnes of CO2 or its equivalents in other greenhouse gases. Thanks in part to the windy weather in 2017, the share of renewable energies was so strong that the energy sector emitted 19.5 million tons less and Germany’s total emissions of climate-damaging greenhouse gases by 4.4 million tons (0.5 %) decreased.

However, at 313 million tonnes, the energy sector is still the sector to which the greatest weight is attached in complying with German climate targets.

Now, Germany’s coal commission has recommended that the complete phase-out of coal be burned by 2038. Since the last German nuclear power plant should be shut down in 2022, this is an ambitious task, even if many environmentalists naturally take too long to do so. After all, the aim is to secure the supply of electricity, make socially compatible job losses and create new prospects for the affected regions.

Federal Minister of Economics Peter Altmaier, who was also Federal Minister for the Environment just a few years ago, knows both sides and assumes that Germany’s climate targets can be met by successive phase-out. Because by 2030, the Federal Republic wants to emit 60% less greenhouse gases compared to the reference year 1990.

However, the phase-out of coal also means that renewables must continue to be developed, the storage technologies for electricity and the power lines that guide wind energy from the north to the south of the republic. Because without coal power and nuclear energy, the main sources of renewable energy and electricity from gas-fired power plants will remain to secure their energy supply.

The costs are currently estimated at 40 billion euros. Of this, 1.3 billion will be provided annually by the federal government for the federal states and an additional 700 million euros annually to secure concrete projects. The rising electricity prices for industry and consumers will be reduced from 2023 by a subsidy to the network charges of two billion euros annually.

Ultimately, the roadmap for further decarbonisation of the German energy industry creates planning security for German industry on the one hand and on the other hand tries to implement Germany’s climate protection goals. It is a compromise, certainly. But a result without compromise on all sides would have resulted in a much worse result, namely none at all. Therefore, it is advisable to look at the work of the coal commission once from this point of view.

(Average Quotes Exchange / OTC)
Instrument	2019-01-11	2019-01-25	Change
EUA (Spotmarket)	24.83 EUR	23.76 EUR	-1.07 EUR
EUA (December-2019-Future)	24.86 EUR	23.93 EUR	-0.93 EUR
CER (Spotmarket)	0.24 EUR	0.24 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	62.59 USD	61.66 USD	-0.93 USD
EURO (Currency, Forex)	1.1367 USD	1.1404 USD	+0.0037 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 or +44.20.79790283.

With kind regards,

Advantag Services GmbH

Dear Sir or Madam,

The share of renewable energies in power generation in Germany has cracked 40% last year. On average, 40.4% of the electricity produced in Germany, equivalent to 219 terawatts, came from wind, solar, biomass, hydropower or other renewable sources. At 20.4%, wind power was the clear leader, followed by photovoltaics (8.4%) and biomass (8.3%). For the first time ever in Germany, the renewable industry has generated more electricity than the burning of coal. Brown coal was at 24.1% in 2018 and hard coal at 13.9%. Including gas (7.3%), fossil energy producers only accounted for 45% last year.

In the 49th week of 2018, 53.5% of energy production was generated by renewable energy, but the best weekly value was in the 52nd kW of 2017, where as much as 58.3% of the electricity came from renewable sources.

Since 2010, the share of renewables of 19.3% has more than doubled in Germany and it has been the network operators despite the many times in the past years predicted blackouts have always managed to keep the network stable, even if the cost has caused billions. The completion of the power lines to the south of Germany is therefore more important than ever as the proportion of renewable energies increases.

Although oil prices rose significantly in the last week due to speculation that Saudi Arabia had reduced its oil production, prices for European emission allowances (EUA) fell and closed below the € 24 mark.

This week, the auctions at the Leipzig EEX start again after the winter break. Monday, Tuesday and Thursday each want to find 2.495 million EUA customers, for a total of 7.485 million EUAs. In the following week, there are significantly more due to the Polish auction, namely 11.9135 million EUA and 640,000 emission allowances for air traffic (EUAA).

(Average Quotes Exchange / OTC)
Instrument	2018-12-28	2019-01-04	Change
EUA (Spotmarket)	24.95 EUR	23.49 EUR	-1.46 EUR
EUA (December-2019-Future)	24.98 EUR	23.73 EUR	-1.25 EUR
CER (Spotmarket)	0.25 EUR	0.24 EUR	-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	53.54 USD	57.07 USD	+3.53 USD
EURO (Currency, Forex)	1.1440 USD	1.1395 USD	-0.0045 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