Category: Carbon Market News

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

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