Category: Carbon Market News

Dear Sir or Madam,

The IPCC has released its latest report, which foresees drastic global consequences if humanity fails to limit global warming to a maximum of 1.5°C, compared to the pre-industrial era. In its report, the IPCCC believes that this target can be achieved if global greenhouse gas emissions are reduced to 45% of 2010 levels by 2030. However, this would require a closed and immediate action by all those nations responsible for these greenhouse gas emissions.

The fact that this alone in the former climate protection flagship Germany does not work, shows recently on the subject of diesel vehicles. Instead of taking decisions to retrofit Euro 4 and 5 vehicles with state-of-the-art technology, some of which are still doing their job well, exchange premiums should be used to purchase new vehicles. Considering that the production of a car causes as much greenhouse gas as its average useful life, this is a shameful result. At the same time, the EU is already warning that the old, dirty diesel cars would be exported especially to Eastern Europe, where it will continue to emit its pollutants.

A positive signal for climate protection was issued last week by the German Higher Administrative Court of Munster, which did not see sufficient evidence for the presentation of German power generator RWE that the clearing of the remaining Hambacher forest is necessary for the security of supply with electricity. This celebrated on Saturday about 50,000 protesters on the ground peacefully, after the ban on demonstrations could be stopped by urgent applications at the Administrative Court of Aachen and the Federal Constitutional Court. Now it is up to the German coal commission to organize a swift exit from lignite burning.

CO2 emissions rights were also given a boost, which rose again sharply on Friday after a strong auction result and posted a plus of 4.4% on a weekly basis.

 

(Average Quotes Exchange / OTC)
Instrument	2018-09-28	2018-10-05	Change
EUA (Spotmarket)	21.16 EUR	22.09 EUR	+0.93 EUR
EUA (December-2018-Future)	21.21 EUR	22.16 EUR	+0.93 EUR
CER (Spotmarket)	0.29 EUR	0.28 EUR	-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	82.75 USD	84.12 USD	+1.37 USD
EURO (Currency, Forex)	1.1603 USD	1.1522 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. 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,

Chaos days – it’s hard to find another summary term for the events of the past week.

Chaos days, for example, for the uncounted inhabitants of the Philippines and China, who had to be evacuated because of the typhoon “Mangkhut”, suffered heavy damage to their belongings and many of whom have already died. In the Philippines alone, 65 dead people have been reported so far, but many residents are still missing.

Chaos days, too, because at the time of the typhoon’s landfall, on the other side of the earth the storm “Florence” had also claimed its first lives and is incessantly flooding the southeastern US with unimaginable masses of water.

Chaos days but unfortunately also brought about by people, such as in the North Rhine-Westphalian Hambacher forest. The current eviction of the forest area, which has been occupied for some 6 years, proves to be a reflection of the political situation in Germany. Driven by the AFD, which is known to deny the man-made climate change, the policy is divided into the proponents of the fastest possible exit from the dirtiest energy source on the one hand and those who want to use lignite as long as possible. Here especially the energy giant RWE, who likes to advertise with the pun “voRWEggehen” (moving in front, to lead the way), but probably meant something else. Even though RWE may officially want to keep an eye on supply security, electricity costs and jobs in addition to climate protection in the energy transition, the current fight in the Hambacher Forest means everything else but “lead the way”. While, on the one hand, the share of renewable energies in Germany continues to rise and, on the other hand, coal burning is becoming more and more unattractive as a result of the significantly increased CO2 price, one has to consider the fight for the Hambacher Forest more as the behavior of a regime, which on the last day before the end of the war is still hastily carrying out legal executions of opponents of the regime. Anyway, it could be good that this shot goes backwards.

Chaos days, however, also on the carbon market. From the circle of intermediaries, someone on Friday called the situation as “insane”. From a technical point of view, the market has experienced the worst decline since 2006, with a fabulous 30 percent drop within one week. The background only can be explained with panic sales. On Wednesday, the market already saw a slightly weaker auction of Polish certificates on the EEX, followed by a really significantly worse result one day later. Speculative traders reacted in panic. On Monday of the same week, the price for pollution rights had risen to a high of 25.79 EUR and now probably none of the speculators wanted to miss the possible turnaround. This in turn automatically triggered this spectacular price drop through previously set stop-loss orders, which only came to a standstill at 17.90 EUR. In this dramatic phase, whose end was not foreseeable in the course of Friday, the spot market even partially discontinued trading. Intelligently, however, some traders stabilized with purchases the market again. Since then, the price has been moving in a range around the 20-euro mark.

 

(Average Quotes Exchange / OTC)
Instrument	2018-09-07	2018-09-14	Change
EUA (Spotmarket)	23.20 EUR	19.94 EUR	-3.26 EUR
EUA (December-2018-Future)	23.22 EUR	19.97 EUR	-3.25 EUR
CER (Spotmarket)	0.29 EUR	0.29 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	77.02 USD	78.08 USD	+1.06 USD
EURO (Currency, Forex)	1.1553 USD	1.1627 USD	+0.0074 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,

Largely unnoticed by the rest of the German country, a clearly recognizable consequence of climate change in Germany is emerging in the Harz Mountains. Here are the dams of the six reservoirs, which are responsible for the regional drinking water supply, only at a level of only 45%. Since the beginning of the records in 1857, there has never been so little rainfall there as in the past few months. In addition, drinking water consumption has been particularly high due to the high summer temperatures.

If the drought persists, the water supply would last only a few months. The waterworks there have already taken initial measures to ensure the future supply. The people in the region are still not called to save water, but if no precipitation-rich fall and winter follow, the dams in February are mathematically empty in February 2019. A scenario that is known in Germany so far only from disaster films.

In the past week, CO2 emission certificates increased by more than 10% and closed above the mark of 23 euros per ton of CO2. In addition to the trend sequel, this may have been due to the announcement that Ministries of the Environment of France and Germany intend to devise common methods for the future pricing of greenhouse gas emissions over the next six months. An important point here is the extension of CO2 emissions trading to other industries and economic sectors that have so far been spared.

In July 2008, a European emission allowance (EUA) peaked at € 29.69 as all-time-high. 10 years later, the price seems to be aiming for this value again, because this morning the EUA were already well above the 25-euro mark. Demand for this week’s auctions and trade volumes are important indicators that need to be kept in mind.

 

(Average Quotes Exchange / OTC)
Instrument	2018-08-31	2018-09-07	Change
EUA (Spotmarket)	21.05 EUR	23.20 EUR	+2.15 EUR
EUA (December-2018-Future)	21.09 EUR	23.22 EUR	+2.13 EUR
CER (Spotmarket)	0.29 EUR	0.29 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	77.40 USD	77.02 USD	-0.38 USD
EURO (Currency, Forex)	1.1601 USD	1.1553 USD	-0.0048 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 2010, the German government launched the German “Energy and Climate Fund”, into which the proceeds of the auctions of German emission certificates on the Leipzig Energy Exchange EEX flow. This money is used, among other things, to finance electromobility, CO2 building renovation or to promote research into renewable energies.

This year, the fund can look forward to significant additional income. The German emissions trading office expects revenues to double to approximately two billion euros, which can be attributed to the significant increase in prices.

Prices for European emission rights rose again last week, reaching a new high of EUR 21.79 per ton of CO2 or its equivalent of other greenhouse gases on Thursday. Last time there was such a price level 10 years ago.

 

(Average Quotes Exchange / OTC)
Instrument	2018-08-24	2018-08-31	Change
EUA (Spotmarket)	20.70 EUR	21.05 EUR	+0.35 EUR
EUA (December-2018-Future)	20.75 EUR	21.09 EUR	+0.34 EUR
CER (Spotmarket)	0.29 EUR	0.29 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	75.74 USD	77.40 USD	+1.66 USD
EURO (Currency, Forex)	1.1620 USD	1.1601 USD	-0.0009 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