Emissions Trading / Carbon Market News (2018-05-04)

Dear Sir or Madam,

Whether the big German Allianz Insurance has played a role in its decision not to insure neither the construction nor the operation of coal-fired power plants in the future, the suit of the Peruvian peasant Saúl Luciano Lliuya against RWE in terms of the personal consequences of climate change, we do not know. However, the economic risks in connection with the burning of fossil fuels, which can hardly be calculated in the future, should be taken into account by all actors at the latest since the diesel scandal and the first partial success of the complaint of the Peruvian farmer against RWE. The German Allianz insurance is not the first well – known and globally operating company, which withdraws from the financing of climate – damaging technologies and certainly is not one of the last.

In the past week, the deadline for submitting certificates ended in the compliance market of the European Emissions Trading System (EU ETS). Trading companies must be submit until 30.04. one year of emission and depreciation of the emitted amount of CO2 or its equivalent of other greenhouse gases. This should have succeeded in all companies, because otherwise threatens next to the price for the purchase of the certificates a fine of 100 € per not punctually issued certificate, which can be life-threatening for one or the other companies.

Thus, the European emission allowances also took the end of the deadline for a brief breather. After prices rose to € 13.79 per EEA on Tuesday, prices fell to € 12.75 in a weaker energy market environment on Thursday to close at € 13.00 at the close of the trading week, at a closing price of € 13.00 conclude.

The fact that market participants have seen no reason for a correction of the EUA prices in the past week, even after the end of the submission deadline, currently speaks against an end to the bull market. On the other hand, a weak auction demand or a negative market environment may be the trigger for price declines. It is therefore important to keep an eye on these two indicators next week.

 

(Average Quotes Exchange / OTC)
Instrument 2018-05-04 2018-04-27 Change
EUA (Spotmarket) 13.00 EUR 13.51 EUR -0.51 EUR
EUA (December-2018-Future) 13.02 EUR 13.56 EUR -0.54 EUR
CER (Spotmarket) 0.21 EUR 0.20 EUR +0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 74.92 USD 73.65 USD +1.27 USD
EURO (Currency, Forex) 1.1958 USD 1.2128 USD -0.0170 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 (2018-04-30)

Dear Sir or Madam,

Those who had hoped to cover themselves with cheaper emission allowances shortly before the end of the deadline were deceived in the past week. Last week’s trading range continued to increase, ranging from € 12.72 to € 13.66 per EUA, or tonne of CO2 or its equivalent in other greenhouse gases. At the end of the trading week, the certificates were again visibly firmer compared to the previous week thanks to stronger auction results, closing at just over four per cent, at just over 13.50 euros.

In the past week, the newspapers said that the debate over possible driving bans on diesel-engined vehicles would increase CO2 emissions. This statement we have followed up once and have compared the official values ​​of the most famous German compact car VW Golf as petrol or diesel and found that this statement can not stand so. For this we have selected two engines with the same power (150 hp each) in order to obtain a fair basis for comparison. According to the manufacturer, the diesel engine (TDI) consumes 4.3 liters per 100 km. The gasoline engine (TSI) has a slightly higher fuel consumption and requires 4.9 liters at the same distance.

The burning of a liter of diesel, however, releases 2.64 kilograms of CO2, with the combustion of one liter of gasoline being calculated at 2.33 kilograms of CO2. Ultimately, therefore, the petrol engine emits 11.417 kilograms of CO2 per 100 kilometers of standard fuel consumption, whereas the diesel engine emits almost identical values ​​and emits 11.352 kilograms of CO2, which corresponds to a nearly homeopathic difference of 0.57%.

The blanket claim that diesel engines are being produced to fight climate change is clearly misleading, in order not to use the words “fake news”.

 

(Average Quotes Exchange / OTC)
Instrument 2018-04-27 2018-04-20 Change
EUA (Spotmarket) 13.51 EUR 13.03 EUR +0.48 EUR
EUA (December-2018-Future) 13.56 EUR 13.05 EUR +0.51 EUR
CER (Spotmarket) 0.20 EUR 0.20 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 73.65 USD 73.80 USD -0.15 USD
EURO (Currency, Forex) 1.2128 USD 1.2286 USD -0.0158 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 (2018-04-23)

Dear Sir or Madam,

The past trading week was quite turbulent. European pollution rights prices ranged between € 12.67 and € 14.22 per ton of CO2, with the latter marking a new seven-year high last Monday. Towards the end of the trading week, after a weak auction demand, the price nearly lost the previous week’s plus, but closed above an important support line just above EUR 13 per EUA.

In the past year, global CO2 emissions trading revenues increased by 45% to $ 32 billion. This includes, among other things, income from CO2 taxes as well as proceeds from the auctioning of emission allowances in global CO2 trading.

On Monday of next week, the deadline for the previous year ends in mandatory European emissions trading. Thus, companies subject to commercial duty still have a few days left to cover themselves with certificates, but in some circumstances they should consider a possible transfer time frame when making their purchase decisions, insofar as the certificates do not come from a trading account. Even if the certificates are transferred from a trading account, the transfer time may be 26 hours, as long as the recipient account is not included in the sender’s trust account list.

 

(Average Quotes Exchange / OTC)
Instrument 2018-04-20 2018-04-13 Change
EUA (Spotmarket) 13.03 EUR 13.90 EUR +0.94 EUR
EUA (December-2018-Future) 13.05 EUR 13.94 EUR +0.95 EUR
CER (Spotmarket) 0.20 EUR 0.20 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 73.80 USD 72.44 USD +5.45 USD
EURO (Currency, Forex) 1.2286 USD 1.2328 USD +0.0049 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 (2018-04-16)

Dear Sir or Madam,

The fundamental risks in the Middle East have been exacerbated by the attacks of the Americans, the French and the British Forces, while oil stocks in the OECD have continued to fall. This led to a significant increase in crude oil, which boosted not least the price of European emission allowances. On Friday, the price of the EUAs rose to 14.08 euros, before it ended the trading week with a visible increase of just under one euro at 13.90.

Last week, the Potsdam Institute for Climate Impact Research (PIK) published a study that provided scientific evidence that the Gulf Stream is weakening. The Gulf Stream is an important source of heat for the European continent, bringing the warm waters of the West African region across the coasts of Florida to Europe and then to the South of Greenland. This important stream has now slowed by 15% in the past 70 years, due to climate change. The lower the temperature difference between the North Atlantic and the tropical waters, the slower the Gulf Stream. Ultimately this means that only a cold North Atlantic is a guarantee for a strong Gulf Stream, which brings warm air masses from the South to Europe.

In recent years, there have been several scientists who have linked a further weakening of the Gulf Stream with the possibility of the appearance of a small ice age in Europe.

 

(Average Quotes Exchange / OTC)
Instrument 2018-04-13 2018-04-06 Change
EUA (Spotmarket) 13.90 EUR 12.96 EUR +0.94 EUR
EUA (December-2018-Future) 13.94 EUR 12.99 EUR +0.95 EUR
CER (Spotmarket) 0.20 EUR 0.20 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 72.44 USD 66.99 USD +5.45 USD
EURO (Currency, Forex) 1.2328 USD 1.2279 USD +0.0049 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 (2018-04-09)

Dear Sir or Madam,

According to the German government, the EU should in future invest at least one fifth of its budget in projects that promote climate protection. It thus supports the Green Growth Group’s demand to invest a minimum of 20% of the EU budget from 2021 on appropriate programs and climate-friendly projects. Currently, the German government spends about 3.7 billion annually on climate protection projects, which is just over one percent of the federal budget.

A weaker market environment in the energy sector, especially for oil and electricity, also increased the market for CO2 emission rights last week. For example, prices moved sideways-downwards after lower demand at the auctions, and the EUA lost around 30 cents on a weekly basis against the particularly bullish last week. Only the CER were able to gain slightly in view of the approaching end of the compliance submission deadline for 2017.

Even the start of the new week starts a bit cautiously with a minus of about one percent.

 

(Average Quotes Exchange / OTC)
Instrument 2018-04-06 2018-03-29 Change
EUA (Spotmarket) 12.96 EUR 13.26 EUR -0.30 EUR
EUA (December-2018-Future) 12.99 EUR 13.28 EUR -0.29 EUR
CER (Spotmarket) 0.20 EUR 0.19 EUR +0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 66.99 USD 70.26 USD -3.29 USD
EURO (Currency, Forex) 1.2279 USD 1.2302 USD -0.0023 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