Category: Carbon Market News

Dear Sir or Madam,

Scientists from the World Weather Attribution network have analyzed data from several European countries since the beginning of the previous century, including the three warmest consecutive days of each year. In the process, they have come to the conclusion that climate change has doubled the chance of heat waves currently prevailing in much of Europe. The global trend towards extreme weather events continues to increase. In the opinion of the scientists a rapid exit from fossil energy production is indispensable.

The German Federal Government is currently examining whether it should limit the currently unrestricted priority of renewable energies over fossil energy generation in grid feed-in. This should reduce the cost of maintaining grid stability. In the past year, these amounted to more than one billion euros, as electricity with a negative electricity price had to be sold to neighboring countries. Grid expansion is lagging significantly behind the production of renewable energies, as the major power lines to the south will be completed in a few years’ time.

On Tuesday of last trading week, the price of European CO2 emission rights marked a new seven-year high at € 17.59 per tonne. In the following days, prices fell again slightly and closed with a small plus compared to the previous week.

 

(Average Quotes Exchange / OTC)
Instrument	2018-07-20	2018-07-27	Change
EUA (Spotmarket)	17.04 EUR	17.08 EUR	+0.04 EUR
EUA (December-2018-Future)	17.07 EUR	17.12 EUR	+0.05 EUR
CER (Spotmarket)	0.33 EUR	0.28 EUR	-0.05 EUR
ICE Brent Crude Oil (Benchmark Future)	72.99 USD	74.87 USD	+2.88 USD
EURO (Currency, Forex)	1.1725 USD	1.1653 USD	-0.0072 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 or +44.20.79790283.

 

With kind regards,

Advantag Services GmbH

Dear Sir or Madam,

According to the Federal Association of the Energy Industry (BDEW), a total of 118 billion kilowatt hours were generated by renewable energies in Germany in the first half of 2018. The share of the total German electricity production was 36%, whereby for the first time more green electricity than coal flow was produced. Compared with the previous year, renewable energies saw another increase of 10%.

Last Wednesday, interest in the auction of 4,593,500 EUA British EUA on the London ICE was so low that the auction was unsuccessful. Also, the EU auction last Friday could not enjoy a high demand, but was successfully carried out at a price of 15.80 euros; Twenty-one bidders were pleased with the bid.

Despite the weakening auction demand in the past week, the EUA could continue to gain compared to the previous week and closed on Friday just above the mark of 16 euros.

This week again auctions with a total volume of 21,504,000 EUA will be carried out at the Leipzig EEX. In addition, 3.547 million EUA from Polish contingent are to be found on Wednesday, as well as 4.36 million pieces for Germany customers on Friday.

The new week starts on the secondary market with a significant gain of more than one percent on this Monday morning.

 

(Average Quotes Exchange / OTC)
Instrument	2018-07-06	2018-07-13	Change
EUA (Spotmarket)	15.68 EUR	16.02 EUR	+0.34 EUR
EUA (December-2018-Future)	15.70 EUR	16.06 EUR	+0.36 EUR
CER (Spotmarket)	0.25 EUR	0.25 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	77.10 USD	74.97 USD	-2.13 USD
EURO (Currency, Forex)	1.1745 USD	1.1683 USD	-0.0068 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 or +44.20.79790283.

 

With kind regards,

Advantag Services GmbH

 

 

 

 

 

Dear Sir or Madam,

A breakup of the grand coalition in Germany seems to have been averted, not least because the SPD, in view of bad poll numbers, also has no interest in new elections and has grudgingly accepted the asylum compromise.

An unstable Germany in a weakened Europe would probably be in the interest of Donald Trump, who has expressed the view that the European Union was merely founded to weaken the US economically.

The German benchmark index DAX has taken note of the agreement in Berlin sympathetically and gained more than 200 points in the past week and also the euro shows itself against the US dollar again slightly in the plus.

Despite weaker oil prices, prices for European CO2 emission allowances rose sharply by just under 5% in the previous trading week, but this is also explained by the increased energy consumption caused by the continual high temperatures in Europe.

This week, 12,639,000 new EU certificates and 4,360,000 EUAs from German contingents will be auctioned at the Leipzig EEX on Friday. On Wednesday, 4,593,500 UK EEA will be auctioned on the London ICE, bringing the total to 21,592,500 new allowances this week.

In August, the summer break is again with a halved auction volume, and this is known to all market participants scarcity is already priced in the current prices.

 

(Average Quotes Exchange / OTC)
Instrument	2018-06-29	2018-07-06	Change
EUA (Spotmarket)	14.98 EUR	15.68 EUR	+0.70 EUR
EUA (December-2018-Future)	14.99 EUR	15.70 EUR	+0.71 EUR
CER (Spotmarket)	0.23 EUR	0.25 EUR	+0.02 EUR
ICE Brent Crude Oil (Benchmark Future)	79.07 USD	77.10 USD	-1.97 USD
EURO (Currency, Forex)	1.1683 USD	1.1745 USD	+0.0062 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 or +44.20.79790283.

 

With kind regards,

Advantag Services GmbH

Dear Sir or Madam,

the relationship between the two German sister parties CDU and CSU is more than tense and it is currently extremely unclear how it will continue in the future. After lengthy meetings in Munich and Berlin, the current Federal Interior Minister has thrown his resignation from the post of Federal Minister and the CSU leadership in the balance, this decision, however, postponed again. What may seem like a victory for the Chancellor is, in fact, a defeat for the ruling coalition, and its position is as high as it has ever been in its 13-year chancellorship.

Rarely does the economy, including the Bavarian economy, position itself behind the position of Angela Merkel, as continuity and cohesion in Europe is an important basis for economic success. Whatever the coming days bring, a stormy autumn on the political level seems to be guaranteed.

In the past week, EU member states have come to a compromise with the EU Parliament on renewable energy and energy efficiency in climate protection. The recast of the Energy Efficiency Directive sets an energy saving target of at least 32.5 per cent by 2030, which is significantly higher than the 27 per cent proposed so far. Among other things, the share of renewable energies in the transport sector is set to increase to 14 percent by 2030, and thus be doubled.

Four variants of biomass or renewable electricity may be used: biofuels from crops such as corn or oilseed rape, biofuels from waste and residues such as straw or edible oils, electricity from renewable energies and synthetic fuels from renewable energy. The share of conventional biofuels from arable crops in total energy consumption in the transport sector should remain at a maximum of 7 percent, as in the past. Member States may now also be allowed to impose less than seven percent of the share of conventional biofuels without compensating elsewhere. The German government wants to count the proportion of conventional biofuels only up to a maximum share of 5.3 percent.

Last week, European CO2 emission allowances ranged from € 14.75 to € 15.38 and ended the first half of 2018 just below the € 15 mark last Friday. Market participants are likely to pay close attention to auction demand and energy market prices this week, but also have an eye on political developments in Germany.

 

(Average Quotes Exchange / OTC)
Instrument	2018-06-22	2018-06-29	Change
EUA (Spotmarket)	15.09 EUR	14.98 EUR	-0.11 EUR
EUA (December-2018-Future)	15.12 EUR	14.99 EUR	-0.13 EUR
CER (Spotmarket)	0.23 EUR	0.23 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	75.71 USD	79.07 USD	+3.36 USD
EURO (Currency, Forex)	1.1653 USD	1.1683 USD	+0.0030 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 or +44.20.79790283.

 

With kind regards,

Advantag Services GmbH

Dear Sir or Madam,

At the beginning of last week, the ninth Petersberg Climate Dialogue with participants from 35 countries came to an end. In preparation for the World Climate Change Conference, which takes place this year in Katowice, Poland, the participants voted in favor that the implementation rules for the 2015 Paris Climate Change Agreement could be adopted. Here, the gradual migration of a socially acceptable exit from the fossil fuels is to succeed. Already in 2013, the World Climate Change Conference took place in Poland, which, unlike any other country, is supposed to change its energy policy with regard to its dependence on the production and generation of coal.

Meanwhile, European carbon rights prices rebounded last week from the previous week’s losses and rose back above the current high of 15 euros at the end of the week following strong auction demand.

The oil price also rose again after the joint oil ministers’ monitoring committee recommended a production increase of one million barrels (159 liters / barrel) per day, but ultimately only 600,000 barrels more should come on the market.

The member states of OPEC currently produce up to 32.5 million barrels of oil per day, which is ultimately converted into fuels, fuels or plastics, leaving behind significant climate and environmental damage.

Each liter of gasoline produces 2.33 kilograms of CO2 through the combustion engine, 2.64 kilos per liter of diesel and 2.53 kilograms of CO2 per liter of kerosene. Currently, about 675 tons of plastic waste land in the oceans every hour, which takes about 400 years to decompose. More than 100 million tons of plastic produced from oil have now accumulated in the oceans, forming islands of gigantic proportions.

Only an incorrigible optimist can argue here that humanity in its entirety possesses sufficient intelligence to handle these substantial problems of the present and the future.

 

(Average Quotes Exchange / OTC)
Instrument	2018-06-15	2018-06-22	Change
EUA (Spotmarket)	14.52 EUR	14.52 EUR	+0.57 EUR
EUA (December-2018-Future)	14.53 EUR	14.53 EUR	+0.59 EUR
CER (Spotmarket)	0.23 EUR	0.23 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	73.33 USD	73.33 USD	+2.38 USD
EURO (Currency, Forex)	1.1605 USD	1.1605 USD	+0.0048 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 or +44.20.79790283.

 

With kind regards,

Advantag Services GmbH