Category: Carbon Market News

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

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