Category: Carbon Market News

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

Dear Sir or Madam,

Last week, the German Cabinet introduced a law to introduce a national emissions trading scheme for fuels. The aim is to gradually make the burning of fossil fuels for transport and heating more expensive, thus making the switch to climate-friendly alternatives more attractive. In return, the revenues will be refunded to the citizens in the form of reductions in the electricity price, in the commuting allowance and in the housing benefit, or invested in climate protection measures. The law now goes into parliamentary deliberations.

As Federal Environment Minister Svenja Schulze explained in more detail, emissions trading will start in 2021, initially with a fixed CO2 price of 10 euros per tonne. This corresponds gross to 2.8 cents per litre of petrol, 3.2 cents per litre of diesel, 3.2 cents per litre of heating oil and 0.2 cents per kilowatt hour of natural gas. In 2022, the price will then be 20 euros per tonne. 2023 to 2025 the certificates are issued with a rising fixed price (25-35 euro per ton CO2). In 2026, the certificates will be auctioned in a corridor of 35 euros to 60 euros per tonne of CO2. In 2025, the maximum and minimum prices for the period from 2027 onwards will be determined. However, citizens who use fossil fuels for heating or driving do not have to trade certificates themselves. This is the responsibility of the approximately 4000 gas suppliers, refineries and other companies that are subject to energy tax.

In the first five years, this new, national emissions trading scheme will basically act like a tax due to the fixed price and will only become a genuine market instrument from 2026, just as the mandatory European emissions trading scheme has been for a long time, which – after the appropriate political corrective measures – has also proved its worth.

Although the prices now fixed are separate from the ETS, they may provide some indication as to where the European pollution rights journey could lead in the coming trading period.

The fact that the introduction of the new emissions trading scheme in Germany is not really a national solo effort in the narrower sense was also made clear last week in Berlin at the International Carbon Pricing Week. Representatives from more than 50 countries and regions exchanged their experiences with carbon pricing instruments and also discussed new approaches to reducing greenhouse gas emissions. The conference made it clear that the number of countries using either a CO2 trading system or another CO2 levy to achieve climate neutrality is constantly growing.

A look at the well-established ETS shows a continuing uncertainty among market participants for the past trading week, which, among other influences, was caused by the still unresolved issue of Brexit. This strong uncertainty is reflected in a range between the highest and lowest price of a good two euros. This resulted in a price axis of 25.25 EUR. The CO2 market was unable to profit from the sharp rise in oil prices.

(Average Quotes Exchange / OTC)
Instrument	18/10/2019	25/10/2019	Change
EUA (Spotmarket)	25.87 EUR	24.95 EUR	-0.92 EUR
EUA (December-2019-Future)	25.88 EUR	24.97 EUR	-0.91 EUR
CER (Spotmarket)	0.21 EUR	0.20 EUR	-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	59.29 USD	61.69 USD	+2.40 USD
EURO (Currency, Forex)	1.1169 USD	1.1080 USD	-0.0089 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