Emissions Trading / Carbon Market News (2018-07-09)

Dear Sir or Madam,

A breakup of the grand coalition in Germany seems to have been averted, not least because the SPD, in view of bad poll numbers, also has no interest in new elections and has grudgingly accepted the asylum compromise.

An unstable Germany in a weakened Europe would probably be in the interest of Donald Trump, who has expressed the view that the European Union was merely founded to weaken the US economically.

The German benchmark index DAX has taken note of the agreement in Berlin sympathetically and gained more than 200 points in the past week and also the euro shows itself against the US dollar again slightly in the plus.

Despite weaker oil prices, prices for European CO2 emission allowances rose sharply by just under 5% in the previous trading week, but this is also explained by the increased energy consumption caused by the continual high temperatures in Europe.

This week, 12,639,000 new EU certificates and 4,360,000 EUAs from German contingents will be auctioned at the Leipzig EEX on Friday. On Wednesday, 4,593,500 UK EEA will be auctioned on the London ICE, bringing the total to 21,592,500 new allowances this week.

In August, the summer break is again with a halved auction volume, and this is known to all market participants scarcity is already priced in the current prices.

 

(Average Quotes Exchange / OTC)      
Instrument 2018-06-29 2018-07-06 Change
EUA (Spotmarket) 14.98 EUR 15.68 EUR +0.70 EUR
EUA (December-2018-Future) 14.99 EUR 15.70 EUR +0.71 EUR
CER (Spotmarket) 0.23 EUR 0.25 EUR +0.02 EUR
ICE Brent Crude Oil (Benchmark Future) 79.07 USD 77.10 USD -1.97 USD
EURO (Currency, Forex) 1.1683 USD 1.1745 USD +0.0062 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

Emissions Trading / Carbon Market News (2018-07-02)

Dear Sir or Madam,

the relationship between the two German sister parties CDU and CSU is more than tense and it is currently extremely unclear how it will continue in the future. After lengthy meetings in Munich and Berlin, the current Federal Interior Minister has thrown his resignation from the post of Federal Minister and the CSU leadership in the balance, this decision, however, postponed again. What may seem like a victory for the Chancellor is, in fact, a defeat for the ruling coalition, and its position is as high as it has ever been in its 13-year chancellorship.

Rarely does the economy, including the Bavarian economy, position itself behind the position of Angela Merkel, as continuity and cohesion in Europe is an important basis for economic success. Whatever the coming days bring, a stormy autumn on the political level seems to be guaranteed.

In the past week, EU member states have come to a compromise with the EU Parliament on renewable energy and energy efficiency in climate protection. The recast of the Energy Efficiency Directive sets an energy saving target of at least 32.5 per cent by 2030, which is significantly higher than the 27 per cent proposed so far. Among other things, the share of renewable energies in the transport sector is set to increase to 14 percent by 2030, and thus be doubled.

Four variants of biomass or renewable electricity may be used: biofuels from crops such as corn or oilseed rape, biofuels from waste and residues such as straw or edible oils, electricity from renewable energies and synthetic fuels from renewable energy. The share of conventional biofuels from arable crops in total energy consumption in the transport sector should remain at a maximum of 7 percent, as in the past. Member States may now also be allowed to impose less than seven percent of the share of conventional biofuels without compensating elsewhere. The German government wants to count the proportion of conventional biofuels only up to a maximum share of 5.3 percent.

Last week, European CO2 emission allowances ranged from € 14.75 to € 15.38 and ended the first half of 2018 just below the € 15 mark last Friday. Market participants are likely to pay close attention to auction demand and energy market prices this week, but also have an eye on political developments in Germany.

 

(Average Quotes Exchange / OTC)      
Instrument 2018-06-22 2018-06-29 Change
EUA (Spotmarket) 15.09 EUR 14.98 EUR -0.11 EUR
EUA (December-2018-Future) 15.12 EUR 14.99 EUR -0.13 EUR
CER (Spotmarket) 0.23 EUR 0.23 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 75.71 USD 79.07 USD +3.36 USD
EURO (Currency, Forex) 1.1653 USD 1.1683 USD +0.0030 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

Emissions Trading / Carbon Market News (2018-06-25)

Dear Sir or Madam,

At the beginning of last week, the ninth Petersberg Climate Dialogue with participants from 35 countries came to an end. In preparation for the World Climate Change Conference, which takes place this year in Katowice, Poland, the participants voted in favor that the implementation rules for the 2015 Paris Climate Change Agreement could be adopted. Here, the gradual migration of a socially acceptable exit from the fossil fuels is to succeed. Already in 2013, the World Climate Change Conference took place in Poland, which, unlike any other country, is supposed to change its energy policy with regard to its dependence on the production and generation of coal.

Meanwhile, European carbon rights prices rebounded last week from the previous week’s losses and rose back above the current high of 15 euros at the end of the week following strong auction demand.

The oil price also rose again after the joint oil ministers’ monitoring committee recommended a production increase of one million barrels (159 liters / barrel) per day, but ultimately only 600,000 barrels more should come on the market.

The member states of OPEC currently produce up to 32.5 million barrels of oil per day, which is ultimately converted into fuels, fuels or plastics, leaving behind significant climate and environmental damage.

Each liter of gasoline produces 2.33 kilograms of CO2 through the combustion engine, 2.64 kilos per liter of diesel and 2.53 kilograms of CO2 per liter of kerosene. Currently, about 675 tons of plastic waste land in the oceans every hour, which takes about 400 years to decompose. More than 100 million tons of plastic produced from oil have now accumulated in the oceans, forming islands of gigantic proportions.

Only an incorrigible optimist can argue here that humanity in its entirety possesses sufficient intelligence to handle these substantial problems of the present and the future.

 

(Average Quotes Exchange / OTC)      
Instrument 2018-06-15 2018-06-22 Change
EUA (Spotmarket) 14.52 EUR 14.52 EUR +0.57 EUR
EUA (December-2018-Future) 14.53 EUR 14.53 EUR +0.59 EUR
CER (Spotmarket) 0.23 EUR 0.23 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 73.33 USD 73.33 USD +2.38 USD
EURO (Currency, Forex) 1.1605 USD 1.1605 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

 

Emissions Trading / Carbon Market News (2018-06-18)

Dear Sir or Madam,

The likelihood of a significant negative impact on the global economy continues to increase after US President Donald Trump has imposed his punitive tariffs. Now China has also responded with punitive tariffs on US products worth US $ 50 billion and the US is now threatening further punitive tariffs on Europe and China. Another escalation is more likely to be an agreement with Donald Trump in mind.

The stock markets have remained relatively unimpressed so far, and the US dollar also rose significantly against the euro at the end of last week. This and speculation about increasing oil production in the Middle East and Russia, as well as the OPEC meeting in Vienna next week, added to the oil price.

Ultimately, this unsatisfactory market environment meant that the price of European emissions allowances also moved significantly lower, losing 1.24 euros per tonne. Whether this is the beginning of a major correction before the summer break, remains to be seen and would not be unusual after the strong price gains of the past half year.

This week, 20,658,000 new certificates will be launched through auctions in the EU, Poland and Germany on the Leipzig EEX. It will therefore be interesting to see how auction demand is developing this week.

Today and tomorrow German Environment Minister Svenja Schulze has invited 35 ministers from all over the world to the Petersberg Climate Dialogue in preparation for this year’s World Climate Summit in Katowice, Poland. Important points here are the preparation of possible decisions regarding the implementation of the Paris Agreement on Climate Change and the restructuring of the global economy, which has hitherto been largely based on fossil fuels, towards sustainability.

Whether Germany can still maintain its credibility in terms of global climate protection is doubtful, given the expected significant failure of the CO2 reduction target of 40% by 2020.

 

(Average Quotes Exchange / OTC)      
Instrument 2018-06-08 2018-06-15 Change
EUA (Spotmarket) 15.76 EUR 14.52 EUR -1.24 EUR
EUA (December-2018-Future) 15.82 EUR 14.53 EUR -1.29 EUR
CER (Spotmarket) 0.23 EUR 0.23 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 76.42 USD 73.33 USD -3.09 USD
EURO (Currency, Forex) 1.1767 USD 1.1605 USD -0.0162 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

Emissions Trading / Carbon Market News (2018-06-11)

Dear Sir or Madam,

It would be surprising if US President Donald Trump did not cause another surprise after his premature departure from the G7 summit. And how could it be otherwise – that came in the form of the Twitter message that he completely revoked his approval of the recent statement of G7 participants.

Donald Trump, but also the new government in Italy and the associated fear that Europe will face another ordeal, are currently putting pressure on markets and putting pressure on emissions certificates too.

These showed on Tuesday last week, a new seven-year high at 16.70 euros, but could not maintain this despite respectable auction results due to the prevailing uncertainty of the markets until the end of the trading week. Compared to the previous week, the EUA closed with a loss of 22 cents at 15.76 Euros.

 

(Average Quotes Exchange / OTC)      
Instrument 2018-06-01 2018-06-08 Change
EUA (Spotmarket) 15.98 EUR 15.76 EUR -0.22 EUR
EUA (December-2018-Future) 16.00 EUR 15.82 EUR -0.18 EUR
CER (Spotmarket) 0.22 EUR 0.23 EUR +0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 76.05 USD 76.42 USD +0.37 USD
EURO (Currency, Forex) 1.1649 USD 1.1667 USD +0.0118 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