Category: Carbon Market News

Dear Sir or Madam,

The likelihood of a significant negative impact on the global economy continues to increase after US President Donald Trump has imposed his punitive tariffs. Now China has also responded with punitive tariffs on US products worth US $ 50 billion and the US is now threatening further punitive tariffs on Europe and China. Another escalation is more likely to be an agreement with Donald Trump in mind.

The stock markets have remained relatively unimpressed so far, and the US dollar also rose significantly against the euro at the end of last week. This and speculation about increasing oil production in the Middle East and Russia, as well as the OPEC meeting in Vienna next week, added to the oil price.

Ultimately, this unsatisfactory market environment meant that the price of European emissions allowances also moved significantly lower, losing 1.24 euros per tonne. Whether this is the beginning of a major correction before the summer break, remains to be seen and would not be unusual after the strong price gains of the past half year.

This week, 20,658,000 new certificates will be launched through auctions in the EU, Poland and Germany on the Leipzig EEX. It will therefore be interesting to see how auction demand is developing this week.

Today and tomorrow German Environment Minister Svenja Schulze has invited 35 ministers from all over the world to the Petersberg Climate Dialogue in preparation for this year’s World Climate Summit in Katowice, Poland. Important points here are the preparation of possible decisions regarding the implementation of the Paris Agreement on Climate Change and the restructuring of the global economy, which has hitherto been largely based on fossil fuels, towards sustainability.

Whether Germany can still maintain its credibility in terms of global climate protection is doubtful, given the expected significant failure of the CO2 reduction target of 40% by 2020.

 

(Average Quotes Exchange / OTC)
Instrument	2018-06-08	2018-06-15	Change
EUA (Spotmarket)	15.76 EUR	14.52 EUR	-1.24 EUR
EUA (December-2018-Future)	15.82 EUR	14.53 EUR	-1.29 EUR
CER (Spotmarket)	0.23 EUR	0.23 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	76.42 USD	73.33 USD	-3.09 USD
EURO (Currency, Forex)	1.1767 USD	1.1605 USD	-0.0162 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,

It would be surprising if US President Donald Trump did not cause another surprise after his premature departure from the G7 summit. And how could it be otherwise – that came in the form of the Twitter message that he completely revoked his approval of the recent statement of G7 participants.

Donald Trump, but also the new government in Italy and the associated fear that Europe will face another ordeal, are currently putting pressure on markets and putting pressure on emissions certificates too.

These showed on Tuesday last week, a new seven-year high at 16.70 euros, but could not maintain this despite respectable auction results due to the prevailing uncertainty of the markets until the end of the trading week. Compared to the previous week, the EUA closed with a loss of 22 cents at 15.76 Euros.

 

(Average Quotes Exchange / OTC)
Instrument	2018-06-01	2018-06-08	Change
EUA (Spotmarket)	15.98 EUR	15.76 EUR	-0.22 EUR
EUA (December-2018-Future)	16.00 EUR	15.82 EUR	-0.18 EUR
CER (Spotmarket)	0.22 EUR	0.23 EUR	+0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	76.05 USD	76.42 USD	+0.37 USD
EURO (Currency, Forex)	1.1649 USD	1.1667 USD	+0.0118 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,

One can tell US President Donald Trump a lot, but not that he does not implement his ideas of politics – even against increasing reservations from their own ranks. The extent to which import tariffs on steel and aluminium products from the EU will ultimately burden the European economy is still unclear. 25% on steel and 10% on aluminium will not be without effect. Although possible retaliatory duties on US products may be understandable, they would only further escalate the situation. The US is already isolating itself from its long-term partners with this kind of policy, and Europe now faces the task of building new alliances and consolidating alternative paths.

As expected, the market for European emission allowances did not react very bullishly to the punitive tariffs and visibly weakened on Thursday. However, a new seven-year high last Tuesday was priced at € 16.59 per EUA.

 

(Average Quotes Exchange / OTC)
Instrument	2018-05-25	2018-06-01	Change
EUA (Spotmarket)	15.98 EUR	15.26 EUR	-0.72 EUR
EUA (December-2018-Future)	16.00 EUR	15.29 EUR	-0.71 EUR
CER (Spotmarket)	0.22 EUR	0.22 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	76.05 USD	76.55 USD	+0.50 USD
EURO (Currency, Forex)	1.1649 USD	1.1657 USD	+0.0008 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,

After the Peruvian peasant Saúl Luciano Lliuya took legal action against RWE for possible consequences of the operation of coal-fired power plants last year, now the EU is facing a similar lawsuit.

Nine families from four EU states, the Fiji Islands and Kenya, are suing the EU, as their climate protection goals are insufficient in the view of the plaintiffs to avert the dangerous consequences of climate change. The plaintiffs are supported by the environmental organization Germanwatch. Among them is the family Recktenwald of the small German North Sea island Langeoog, which would be affected by an increasing sea level rise on the front line.

To what extent the action will be successful, of course, from today’s perspective, is not foreseeable. However, one thing has already reached them – media attention and perhaps even more awareness of the problem.

The prices of one tonne of CO2 have risen further in Europe last week and have already exceeded the € 16 mark on Monday of last week to mark a new seven-year high on Wednesday at € 16.40, In a weak market environment, which was dominated by rumours of a loosening of the oil production limit by the OPEC, the permit rights at the end of the trading week fell again slightly and closed in the area around 16 euros per EUA.

 

(Average Quotes Exchange / OTC)
Instrument	2018-05-18	2018-05-25	Change
EUA (Spotmarket)	15.22 EUR	15.98 EUR	+0.76 EUR
EUA (December-2018-Future)	15.25 EUR	16.00 EUR	+0.75 EUR
CER (Spotmarket)	0.22 EUR	0.22 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	78.60 USD	76.05 USD	-2.55 USD
EURO (Currency, Forex)	1.1769 USD	1.1649 USD	-0.0120 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 European Commission is suing Germany and five other countries for their poor urban air quality. Since Germany has also decided on these values, nobody can now claim that the EU takes far too ambitious values ​​as a basis. The EU is now doing what they need to do to ensure that the values ​​agreed upon are respected. Of course, the political specter of a driving ban of diesel cars moves closer again, if Germany wants to avoid imminent penalty payments.

If one buys a Porsche SUV, he or she is usually less likely to think about emitting CO2, NOx or particulate matter. The idea that such a large and heavy vehicle can have a low environmental impact is simply absurd. Now 60,000 Porsche Cayenne and Macan are called back because of five illegal shutdown devices, bringing the VW Group once more in the focus of the investigative authorities.

But there is also positive news. The CO2 emissions of the German power mix have fallen significantly since 1990. According to information from the Federal Environmental Agency, last year only 366 million tons were emitted, compared to just 285 million tons last year, which represents a significant drop of 81 million tons or 22%.

In the last week, the bull market continued with the emission certificates. After an unsuccessful auction on Wednesday at the ICE in London for 4,593,500 EUA, the market increased significantly and jumped over the mark of 15 euros, which he was able to hold until the end of last trading week. Also today’s Tuesday continued this trend and the market seems to target the mark of 16 euros.

 

(Average Quotes Exchange / OTC)
Instrument	2018-05-11	2018-04-11	Change
EUA (Spotmarket)	14.57 EUR	15.22 EUR	+0.65 EUR
EUA (December-2018-Future)	14.63 EUR	15.25 EUR	+0.62 EUR
CER (Spotmarket)	0.20 EUR	0.22 EUR	+0.02 EUR
ICE Brent Crude Oil (Benchmark Future)	76.99 USD	78.60 USD	+1.61 USD
EURO (Currency, Forex)	1.1942 USD	1.1769 USD	-0.0173 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