Category: Carbon Market News

Dear Sir or Madam,

Next Friday, the German grand coalition of CDU and SPD wants to present their concept for less CO2 emissions. On this day demonstrations of “Fridays for Future” as well as other climate protection alliances take place in many cities in Germany and worldwide.

In particular, the steering instruments are under discussion here, with either a fixed carbon tax or the more flexible national emission allowance trading in particular for the transport sector and the real estate sector. Among other things, negotiations will continue this week on climate-friendly heating, more attractive public transport and electromobility.

The fact that electromobility in particular can make a major contribution is shown by a calculation by the German motor vehicle trade magazine “Krafthand”, which has determined exactly how much electricity is needed to supply six liters of diesel – a value which a normal diesel car costs on average for 100 kilometers needed. So if you include oil production, transport to the refineries, processing there and transport to the gas station, you can get six liters of diesel to 42 KWh of electricity without driving a kilomaster. With 42 kWh of electricity, for example, you can drive more than 300 kilometers with, for example, the BMW i3 electric car. And that at green power entirely without CO2 emissions.

Following the attacks on two oil rigs in Saudi Arabia this past weekend, the price of crude oil rose sharply this morning, rising in some cases more than 10% against Friday’s close. The EUA futures have also benefited from the fact that they exceeded the € 27 mark at the start of trading. The development of the oil price could continue to cause movement in the energy markets and also in the CO2 prices this week.

(Average Quotes Exchange / OTC)
Instrument	06/09/2019	13/09/2019	Change
EUA (Spotmarket)	25.06 EUR	26.33 EUR	+1.27 EUR
EUA (December-2019-Future)	25.08 EUR	26.38 EUR	+1.30 EUR
CER (Spotmarket)	0.21 EUR	0.21 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	61.63 USD	60.26 USD	-1.37 USD
EURO (Currency, Forex)	1.1026 USD	1.1073 USD	+0.0047 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,

Against the background of the increasingly catastrophic and cost-intensive effects of climate change, the governing parties in Germany are preparing for the 20th of September. Decisions on climate policy are to be launched on this day, but unity of the coalition parties cannot be found shortly before this date. There is a consensus, that CO2 emissions should have a price, but however, the question of the “how” between CO2 taxes on the one hand and a national emissions trading on the other is still highly controversial. It will be a Herculean task to distribute the burdens of the most urgently needed climate protection in a socially equitable manner but also not to strangle the country’s economy. At the same time, of course, the climate targets for 2030 should not be forgotten.

The carbon market did not show a consistent trend during the past trading week. The Brexit chaos, fundamental economic data and the increased supply of fresh certificates have led to very different dealer behavior. In the first half of the week as well as last Friday, for example, massive sales led to a significant correction cuts and pushed the price below the 25-euro mark. In between, however, was quite strong buying interest in the market, so one could even imagine a breakthrough up. In today’s early trading, the bullish signals again prevailed and pushed the price to over EUR 25.30.

(Average Quotes Exchange / OTC)
Instrument	30/08/2019	06/09/2019	Change
EUA (Spotmarket)	26.31 EUR	25.06 EUR	-1.25 EUR
EUA (December-2019-Future)	26.32 EUR	25.08 EUR	-1.24 EUR
CER (Spotmarket)	0.21 EUR	0.21 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	58.95 USD	61.63 USD	+2.68 USD
EURO (Currency, Forex)	1.0989 USD	1.1026 USD	+0.0037 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,

Electromobility is a topic that is significantly worse off in Germany than in other countries with much larger domestic markets. This factor, which is particularly important in Germany, will be disruptive, which is completely out of the question. In the coming years, it will be decided whether cars will continue to be “Made in Germany” or, in the future, mobile telephones will come from the Far East in the future. The electric car is similar to the touchscreen smartphone from Apple, which was completely overslept by the former industry leader Nokia.

In Germany’s major cities, the number of charging stations is growing rapidly, as well as the number of purely electrically powered vehicles. Munich is leading the way on 01.01.2019 with 3,122 electric cars, followed by Berlin with 2,713 and Hamburg with 2,233. Düsseldorf is far behind with 567 electric cars at the beginning of the year.

To include transport and agriculture as quickly as possible in the CO2 emissions trading, could continue to support here.

Carbon emission allowances have stabilized in the past week and have risen slightly despite Boris Johnson’s attempt to undermine democracy in the UK. Since today, the summer break is over at the auctions at the Leipzig EEX and it is again the normal auction calendar. A total of 8,323,500 EUA will be auctioned this week on three trading days, with no auctions on Wednesday and Thursday. In the coming week, there will be 15,782,500 EUA and on Tuesday an additional 892,000 permit rights for air traffic (EUAA).

(Average Quotes Exchange / OTC)
Instrument	23/08/2019	30/08/2019	Change
EUA (Spotmarket)	25.15 EUR	26.31 EUR	+1.16 EUR
EUA (December-2019-Future)	25.10 EUR	26.32 EUR	+1.22 EUR
CER (Spotmarket)	0.20 EUR	0.21 EUR	+0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	58.20 USD	58.95 USD	+0.75 USD
EURO (Currency, Forex)	1.1153 USD	1.0989 USD	-0.0164 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,

There is now growing awareness that for economies worldwide it is far more expensive to ignore climate change than to take countermeasures as soon as possible, which are economically damaging in the short term. Crop failure caused by periods of drought, flood damage, forest dying and even lack of snow in the mountains are already causing economic losses, which are even life threatening for companies. In addition, there are the already foreseeable burdens due to mass migration of people who are increasingly losing their livelihoods. Whenever politicians or lobbyists still reluctant to take swift political action to save money, the bill will not work out.

Many of the scenarios that scientists have been forecasting for years have even proven to be overly optimistic. According to recent satellite image and field observations, Swiss researchers have calculated that more than 300 million tonnes of ice melt every year. Iceland has even declared the world’s first glacier as dead. This means that his ice mass has become so light that he can no longer push forward. The glacier has not, as often observed, only regressed, but has become a simple, further melting ice field. The report recalls the fate of Lake Chad, which has shrunk by 90 percent since the 1970s, as a once-powerful and vital source of water supply for the region.

A look at the past trading week reveals an astonishingly sharp correction in the price of CO2 that we have not experienced for years in a month with reduced auction volumes. After being able to guess a rise above the 30-euro mark at the beginning of August, the bears took over the market and melted the important support at 28 euros, just like the aforementioned polar ice. At the London ICE the lowest price was EUR 25.87, a price level which we last saw one month before.

(Average Quotes Exchange / OTC)
Instrument	09/08/2019	16/08/2019	Change
EUA (Spotmarket)	28.09 EUR	26.00 EUR	-2.09 EUR
EUA (December-2019-Future)	28.12 EUR	25.96 EUR	-2.16 EUR
CER (Spotmarket)	0.21 EUR	0.20 EUR	-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	58.30 USD	58.94 USD	+0.64 USD
EURO (Currency, Forex)	1.1202 USD	1.1097 USD	-0.0105 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 steering effect of the persistently high price for CO2 emission certificates was targeted by politicians for many years and is now finally realized. Throughout Europe, energy producers must face the fact that coal-fired power generation is no longer competitive. Last week, RWE announced that it would close a 1.56 GW coal-fired power plant in the UK on 31/03/2020. With this measure, only four coal power plants remain in operation on the island. The United Kingdom, however, is aiming to cease coal production by 2025.

From Germany, the Federal Association of the energy industry reported that in June for the first time in five years in a month more electricity was imported than exported. The reason for this is also that electricity from coal is no longer cheaper than electricity from gas-fired power plants or renewable energies.

Meanwhile, in the Czech Republic, a governmental advisory council has been set up in the spirit of a coal commission to work out suggestions on how the changed market situation can be accommodated.

In the European Emissions Trading Scheme it was the introduction of the Market Stability Reserve that triggered the rapid price increase. Similarly, further control measures would now have to be bravely conceived and swiftly implemented so that areas such as agriculture and transport, above all aviation, are decarbonised as quickly as possible.

The annual halving of auction volumes in August led to a rebound in the price in the past trading week. After the consolidation phase, which pushed the price well below 28 euros by the middle of the week, the interest in buying picked up sharply on Thursday by more than five percent. It is quite likely that the market will not only test the € 30 mark again in the course of the month, but that it can also be overcome.

(Average Quotes Exchange / OTC)
Instrument	26/07/2019	02/08/2019	Change
EUA (Spotmarket)	28.25 EUR	29.23 EUR	+0.98 EUR
EUA (December-2019-Future)	28.29 EUR	29.26 EUR	+0.97 EUR
CER (Spotmarket)	0.21 EUR	0.21 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	63.23 USD	61.29 USD	-1.94 USD
EURO (Currency, Forex)	1.1131 USD	1.1109 USD	-0.0022 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