Category: Carbon Market News

Dear Sir or Madam,

According to a recent study, management consultancy McKinsey found that climate change could cost hundreds of millions of lives and trillions of dollars. The consultants have calculated the consequences of the climate crisis for 105 countries and have come to the conclusion that global warming is a serious economic threat insofar as the international community does not take countermeasures and continues to follow its current behaviour.

India, Pakistan, Bangladesh and Nigeria in particular are the regions most affected by climate change. By 2050, up to 1.2 billion people could already be living there in places where there is a risk of fatal heat waves. In agriculture alone, annual losses of up to six trillion US dollars could be expected globally by the middle of the century.

And these are just a few aspects that threaten in a few decades if climate change is not combated with all the intensity required.

Rising demand for CO2 emission rights due to lower free allocation quotas has caused prices for European Allowances (EUA) to increase visibly in the past week; the trading week ended with a plus of more than one Euro, well above the 25 Euro mark.

This week, the auction of 11.6 million EUA on four days is on the trading calendar of the Leipzig EEX, which is more than 6 million tons less than in the previous week.

(Average Quotes Exchange / OTC)
Instrument	10/01/2020	17/01/2020	Change
EUA (Spotmarket)	24.12 EUR	25.34 EUR	+1.22 EUR
EUA (December-2019-Future)	24.21 EUR	25.44 EUR	+1.23 EUR
CER (Spotmarket)	0.22 EUR	0.22 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	65.10 USD	65.06 USD	-0.04 USD
EURO (Currency, Forex)	1.1119 USD	1.1089 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.

With kind regards,

Advantag Services GmbH

Dear Sir or Madam,

As you read our market report, your computer, server, and network are consuming power. The same applies to the Internet, the associated data centers and all associated technologies. According to the Federal Environment Agency, German internet and computer use generates a total of around 30 million tons of CO2 annually. That is about 20% more greenhouse gases than a whole country, such as Croatia, causes in annual greenhouse gas emissions. According to the Parisian Shift Project, the share of emissions from the digital economy is already 3.7% of total global greenhouse gas emissions and is growing rapidly by around 9% annually. In five years, the share is expected to be 8% of global greenhouse gas emissions.

In particular, cryptocurrencies such as Bitcoins or Ethereum have a very high energy consumption in their global computing power. But streaming services for films and music are also increasing every year, with a feature film with more than 6 kilos of CO2 on the list.

Better technical solutions are required here as well as the use of CO2-neutral energy and the compensation of unavoidable greenhouse gases in order to reduce the carbon footprint to a minimum. The topic “green Internet” will certainly be an issue in the future.

In the past trading week, the defused political situation in relation to Iraq has again influenced the price of crude oil, which has fallen by more than 5%, as Tehran’s previous reactions have been moderate. In the course of this and due to the continued mild temperatures in Central Europe, the prices for CO2 emission allowances also decreased, but less strongly than was expected.

It will be interesting to see how the market will deal with the relatively high auction volume of around 17 million EUA and 0.8 million EUAA this week.

(Average Quotes Exchange / OTC)
Instrument	03/01/2020	10/01/2020	Change
EUA (Spotmarket)	24.86 EUR	24.12 EUR	-0.74 EUR
EUA (December-2019-Future)	24.98 EUR	24.21 EUR	-0.77 EUR
CER (Spotmarket)	0.22 EUR	0.22 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	68.63 USD	65.10 USD	-3.53 USD
EURO (Currency, Forex)	1.1161 USD	1.1119 USD	-0.0042 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,

The US missile attack on the convoy of Iranian general Ghassem Soleimani last Friday is causing prices on commodities markets to rise as escalation is considered highly likely. Gold, in particular, as a crisis indicator, as well as crude oil and gas, have grown strongly since then.

After Brent crude oil prices started more easily into the new year, it rose to just under USD 2.50 on Friday and the likelihood that this trend will continue is shown by the start of today’s trading day, at which the USD 70 mark is reached fell. Any kind of reprisal strikes from Iran that have already been threatened several times have the potential to cause prices to rise further. The engagements of US oil companies in Iraq in particular could now be the focus of Iranian attacks.

In the course of this, the prices for European CO2 emission rights have also become more expensive towards the end of the past trading week after an easier start to the new year. After a decline of EUR 1.61 on the last trading day in 2019 and an equally subdued start in January 2020, prices rose last Friday in the wake of oil prices and have risen above the € 25 mark again today.

Auctions for CO2 emission rights begin again this week at Leipzig’s EEX. A total of 8,544,000 EUAs will be auctioned on Tuesday, Thursday and Friday.

(Average Quotes Exchange / OTC)
Instrument	27/12/2019	03/01/2020	Change
EUA (Spotmarket)	26.54 EUR	24.86 EUR	-1.68 EUR
EUA (December-2019-Future)	26.70 EUR	24.98 EUR	-1.72 EUR
CER (Spotmarket)	0.26 EUR	0.22 EUR	-0.04 EUR
ICE Brent Crude Oil (Benchmark Future)	65.12 USD	68.63 USD	+0.51 USD
EURO (Currency, Forex)	1.1173 USD	1.1161 USD	-0.0012 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