Category: Carbon Market News

Dear Sir or Madam,

Germany was one of the countries most severely affected by climate change in the past year. Consequently, the Federal Environment Agency recently issued a very detailed statement on the climate change in transport and emphasized the term “reduction gap”. The report shows that even if the measures and instruments adopted so far are implemented, the reduction target for greenhouse gas emissions by 2030 will be missed by far. In order to close this reduction gap, the Federal Environment Agency recommends numerous measures. These include, among other things, a quota of 70% for new registrations of electric vehicles and a higher taxation of vehicles with high CO2 emissions as well as for diesel engines. In addition, several other correctives are proposed, such as the traveling allowance and the truck toll. Whether these will ever even be considered in the next years remains to be doubted, so that we should get used to the concept of the reduction gap already now. Perhaps it will soon be the sad “word of the year”.

In the first week of December, European emissions trading was under pressure from a high auction volume of fresh allowances and a simultaneous sharp dip in oil prices. In the week now beginning, the number of EUAs to be auctioned is again more moderate and the oil price has also shot up significantly since Friday, because the group of OPEC states and other players agreed after long negotiations on a sharper production cut than expected. In the coming months, the 24 countries want to pump 500,000 barrels of oil out of the ground less per day than at present. The so-called OPEC+, with its heavyweights Saudi Arabia and Russia, has already been trying more or less successfully for three years to influence the oil price with such production limits.

(Average Quotes Exchange / OTC)
Instrument	29/11/2019	06/12/2019	Change
EUA (Spotmarket)	25.12 EUR	24.88 EUR	-0.24 EUR
EUA (December-2019-Future)	25.22 EUR	24.94 EUR	-0.28 EUR
CER (Spotmarket)	0.18 EUR	0.18 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	60.76 USD	64.34 USD	+3.58 USD
EURO (Currency, Forex)	1.1017 USD	1.1055 USD	+0.0038 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,

Last week – to coincide with the COP25 World Climate Change Conference in Madrid, which begins this week – the German government has published its monitoring report on climate change in Germany. According to the Federal Environment Ministry, the consequences of global warming in Germany are more noticeable and can be better documented. According to the report, the average air temperature in Germany has already increased by 1.5 degrees from 1881 to 2018. In the last five years alone, this has increased by 0.3 degrees. Among other things, this leads to more health risks due to heat stress, an increase in the mean surface temperature of the North Sea and greater fluctuations in agricultural yields. Now, the Federal Environment Ministry wants to promote the promotion of artificial intelligence in the fight against climate change with 45 million euros, since human intelligence is obviously not enough.

In the next two weeks, the rules of the Paris Agreement on Climate Change will be worked on in Madrid, which is not yet completely finished and will come into force next year. The IPCC has already stated that efforts will not be enough to limit climate change to below 2 ° C. Accordingly, 66 states have already announced that they want to improve their climate targets.

Another issue is uniform rules for an international carbon market. Countries that do not achieve sufficient greenhouse gas reductions should finance climate protection projects in other countries and thereby acquire pollution rights. Accurate monitoring is, however, absolutely necessary here, as there were already irregularities in the previous CDM and JI mechanisms.

Perhaps the biggest controversial issue could be the review of the Warsaw Mechanism, which was agreed in 2013 to ensure that poor countries that are particularly affected by global warming receive appropriate assistance, either from drought disasters, storms or sea-level rise especially in the regions of Asia and Africa. Here are the rich industrialized nations required, which contribute the most to global warming.

Prices for European CO2 emissions rose again slightly in the past trading week, despite significant losses in crude oil. This week, 15.8 million certificates will be auctioned in Leipzig. From December 17, the Christmas break for auctions at the EEX begins on Monday, the 16.12.2019 come this year for the last time 3,013,000 EUA under the hammer.

(Average Quotes Exchange / OTC)
Instrument	22/11/2019	29/11/2019	Change
EUA (Spotmarket)	24.57 EUR	25.12 EUR	+0.55 EUR
EUA (December-2019-Future)	24.58 EUR	25.22 EUR	+0.64 EUR
CER (Spotmarket)	0.18 EUR	0.18 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	63.64 USD	60.76 USD	-2.88 USD
EURO (Currency, Forex)	1.1020 USD	1.1017 USD	-0.0003 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,

Starting with the cut-off date of January 1, 2018, only about 800 billion tons of CO2 are expected to be emitted globally, in order to limit global warming to well below 2 degrees by 2100, according to the IPCC. In view of the current global emissions of about 40 billion tons per year, the world will therefore still have about twenty years left before humankind needs to be climate-neutral.

In a study for the Campact organization, the New Climate Institute came to the conclusion that Germany needed to be climate-neutral by 2030 so as not to miss the 1.5-degree target and to remain within the national budget.

Simply put, everyone would still have a good 100 tonnes of CO2 that they can emit in the years to come. A global CO2 emissions trading scheme in which all people can participate would, above all, achieve one thing – justice. After all, the people who are most affected by climate change are those who have the least responsibility for it.

Prices for European CO2 emissions recovered slightly last week in a positive market environment. This week, due to the Polish and German auction, 15.8 million new certificates will be auctioned at the Leipzig EEX. The demand for the auctions could be a good indicator of how prices will develop over the coming days.

(Average Quotes Exchange / OTC)
Instrument	15/11/2019	22/11/2019	Change
EUA (Spotmarket)	23.85 EUR	24.57 EUR	+0.72 EUR
EUA (December-2019-Future)	23.85 EUR	24.58 EUR	+0.73 EUR
CER (Spotmarket)	0.16 EUR	0.18 EUR	+0.02 EUR
ICE Brent Crude Oil (Benchmark Future)	63.35 USD	63.64 USD	+0.29 USD
EURO (Currency, Forex)	1.11051 USD	1.1020 USD	-0.0031 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 German Bundestag passed the climate protection law last Friday and now only has to pass the Bundesrat. The law sets out how much CO2 can be emitted each year in the areas of buildings, transport, agriculture, energy and industry. The goal of greenhouse gas neutrality by 2050 for Germany will be enshrined in law for the first time. So far, the Federal Government’s 2050 target has been 80 to 95 percent CO2 reduction. The starting price per tonne of CO2 for the transport and housing sectors should be just 10 euros from 2021 onwards.

The German Greens, on the other hand, who have just held their congress in Bielefeld, demand a price of 60 euros per tonne of CO2 and could head for the Chancellery with consistently good election polls.

Regardless, even Chancellor Angela Merkel sees a global warming of 3°C as likely, should the international community remain with the current climate protection goals. According to the Federal Chancellor, 20 percent of the world’s population consumed 80 percent of global resources, which is why these states have a special responsibility.

Greenhouse gas prices continued to be slightly bearish last week, losing nearly one euro. It can not be ruled out that the market will remain under pressure in the new trading week and wants to test the half-year low of EUR 22.03, after having broken important technical support measures. In addition, this week will bring 15,781,000 on five trading days on the Leipzig EEX for auction.

(Average Quotes Exchange / OTC)
Instrument	08/11/2019	15/11/2019	Change
EUA (Spotmarket)	24.84 EUR	23.85 EUR	-0.99 EUR
EUA (December-2019-Future)	24.84 EUR	23.85 EUR	-0.99 EUR
CER (Spotmarket)	0.18 EUR	0.16 EUR	-0.02 EUR
ICE Brent Crude Oil (Benchmark Future)	62.64 USD	63.35 USD	+0.71 USD
EURO (Currency, Forex)	1.11018 USD	1.1051 USD	+0.0033 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 media hype around Greta Thunberg and the movement “Fridays for Future” seems to be coming to an end and climate protection is just one of many topics. So it is fitting that the warning of 11,000 scientists from 184 countries is not to be found on the front pages of the newspapers on which the climate protection movement had recently found a place.

The joint declaration of the scientists, of which 900 are from Germany, warns of a global climate emergency. At the same time, the scientists have come to the conclusion that the objectives of the Paris Agreement on climate change are not enough to reduce global warming. And here too, only 28 EU states and 7 other countries are on the right track.

At the same time, the scientists warned that there would be untold human suffering insofar as human behaviour on greenhouse gas emissions would not fundamentally change. To achieve this, they are calling for, among other things, the switch to renewable energies, a sustainable change in the world economy, the containment of world population growth and the reduction of animal products.

It is to be hoped that this urgent warning will be a topic at the upcoming World Climate Change Conference in Madrid next month.

Prices for one ton of CO2 emissions have become slightly cheaper in the EU next week. During this trading week, 11,066,500 EUAs will be offered for auction on the Leipzig EEX on four days, which is 5.6 million fewer shares than in the previous week.

(Average Quotes Exchange / OTC)
Instrument	01/11/2019	08/11/2019	Change
EUA (Spotmarket)	25.28 EUR	24.84 EUR	-0.44 EUR
EUA (December-2019-Future)	25.29 EUR	24.84 EUR	-0.45 EUR
CER (Spotmarket)	0.20 EUR	0.18 EUR	-0.18 EUR
ICE Brent Crude Oil (Benchmark Future)	61.52 USD	62.64 USD	+1.12 USD
EURO (Currency, Forex)	1.1165 USD	1.1018 USD	-0.0147 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