Category: Carbon Market News

Dear Sir or Madam,

The heat wave in Germany takes a short break and gives way to normal Central European summer temperatures. However, some weather models see new temperature rises of more than 30°C this week and in the coming week this can become a little more. Long lasting rainfall is also not in sight in all parts of the country.

Scientists believe that climate change has already affected the jetstream to such an extent that it is currently slower. The jetstream is wavy at an altitude of 8,000 to 12,000 metres, with a waveform that has established itself, causing the unusually warm and dry European summer weather of recent weeks and months.

Weather and climate specialists see an important reason for the sluggish jet stream in the fact that the temperature difference between the oceans in the north and around the equator is reduced.

Depending on where a wave of the jetstream settles, hot and dry or wet and cool summers may occur. Of course, this also applies to all other seasons. This is becoming a major challenge, especially for agriculture, which also bears a large part of the responsibility for the production of climate-damaging greenhouse gases.

It is possible that the inclusion of mass-produced agricultural holdings in emissions trading would be one way of controlling this, even if this would lead to an end to cheaply produced meat.

Last week, European emission rights ranged between EUR 17.31 and 17.92 per tonne of CO2, and it seems to be a matter of time before the allowances exceed the EUR 18 mark. The halved auction volumes this month could contribute to this, as could higher electricity demand at high temperatures.

 

 

(Average Quotes Exchange / OTC)
Instrument	2018-08-03	2018-08-10	Change
EUA (Spotmarket)	17.65 EUR	17.87 EUR	+0.22 EUR
EUA (December-2018-Future)	17.68 EUR	17.89 EUR	+0.21 EUR
CER (Spotmarket)	0.29 EUR	0.27 EUR	-0.02 EUR
ICE Brent Crude Oil (Benchmark Future)	73.30 USD	72.90 USD	-0.40 USD
EURO (Currency, Forex)	1.1567 USD	1.1409 USD	-0.0158 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,

As every year in August, last Wednesday the CO2 market started with the period of halved auction volume. This month, however, there are two additional non-auction days on the 15th and on the 27th, what means the total amount of just 46,585,000 fresh allowances in August.

It seems that all the dealers were still working on the three trading days from Wednesday to Friday, because the first reduced auctions saw an extremely high demand.

A year ago, the market received a strong bullish impulse from the reduced auction volumes, pushing the carbon price above the six-euro mark. Also in the past week we could register a corresponding, significant price increase with a new top price of 17,85 EUR.

At the weekend, obviously a lot of traders now have go on vacation, which is clearly reflected in the moderate sales at today’s start of trading.

 

(Average Quotes Exchange / OTC)
Instrument	2018-07-27	2018-08-03	Change
EUA (Spotmarket)	17.08 EUR	17.65 EUR	+0.57 EUR
EUA (December-2018-Future)	17.12 EUR	17.68 EUR	+0.56 EUR
CER (Spotmarket)	0.28 EUR	0.29 EUR	+0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	74.87 USD	73.30 USD	-1.47 USD
EURO (Currency, Forex)	1.1653 USD	1.1567 USD	-0.0086 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,

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