Category: Carbon Market News

Dear Ladies and Gentlemen,

Sometimes it´s paradoxical, which small matter themes come up to the daily news reports and which themes become ignored. The US weather authority NOAA showed in their 2017 report, that the current arctic warming is without example in the past 1,500 years. The warming of the arctic has the double speed than the rest of our planet, what was not the case since 2,000 years. The average surface temperature in 2017 was the second warmest since the year 1900. Finally, it leads to the fact, that the arctic ice becomes thinner and the thicker ice is comprising only 21% of the ice cover compared to45% in 1985.

The legendary Club of Rome confirmed also in his 2017 report with the title “Come on!”, that the human hunger for commodities and energy will lead to a collapse of the systems, if we don’t act now.

In the past week, the quotes of European carbon emission allowances became a little under pressure, what brought them below the level of seven Euros on the last two days of the week. But the final quotation last Friday showed much more relaxed at 7.18 Euro and confirmed the seven Euro support level on weekly basis.

 

(Average Quotes Exchange / OTC)
Instrument	2017-12-15	2017-11-08	Change
EUA (Spotmarket)	7.18 EUR	7.14 EUR	+0.04 EUR
EUA (December-2017-Future)	7.18 EUR	7.14 EUR	+0.04 EUR
CER (Spotmarket)	0.17 EUR	0.17 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	63.24 USD	63.30 USD	-0.06 USD
EURO (Currency, Forex)	1.1753 USD	1.1773 USD	-0.0020 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 have 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. These 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 Ladies and Gentlemen,

The CO2 market was dominated by bearish influences in the past week. Since there was no new impetus from the policy, the traders apparently oriented more strongly on the energy complex. The price trend on the oil market was the significant impulse here as the release of stock data from the United States sent oil prices strongly down. Although the price of crude oil recovered quickly thanks to strong import data from China, the carbon market on Friday did not yet follow this counter movement. Instead, apparently automated sales orders have further put the price under pressure. As a result, the oil price changed little at the end of the week, while European pollution rights signed much lighter.

Today’s trading day marks the start of the last week of this year’s auction calendar. It would therefore not be particularly surprising if the CO2 price were now set to recover, too.

 

(Average Quotes Exchange / OTC)
Instrument	2017-12-08	2017-12-01	Change
EUA (Spotmarket)	7.14 EUR	7.68 EUR	-0.54 EUR
EUA (December-2017-Future)	7.14 EUR	7.68 EUR	-0.54 EUR
CER (Spotmarket)	0.17 EUR	0.17 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	63.30 USD	63.72 USD	-0.42 USD
EURO (Currency, Forex)	1.1773 USD	1.1890 USD	-0.0117 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 have 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. These 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 Ladies and Gentlemen,

Farmer Saúl Luciano Lliuya from Peru took a further hurdle for his lawsuit against the German coal power plant operator RWE, because the relevant Higher Regional Court in Hamm acknowledged the case and did mandate the taking of evidence. This means, that the court has accepted the arguments of the plaintiff. RWE is the operator of the coal plant Niederaussern in North Rine-Westphalia, which is with 26.3 million tons the biggest German emitter of carbon dioxide and theoretical responsible on juristic point of view for that part of damages, caused by climate change. Because of the existence-threatening results of climate change in the Peruvian Andes mountains, he claims partial 17,000 Euro from RWE to accomplish with help from environmental organization Germanwatch a worldwide observed precedential case.

Last week, the quotes of European carbon pollution rights (EUA) was traded in a range between 7.45 and 7.82 Euro and closed at 7.68 Euro. This is a small loss of 0.09 Euro per ton against the previous week.

 

(Average Quotes Exchange / OTC)
Instrument	2017-12-01	2017-11-24	Change
EUA (Spotmarket)	7.68 EUR	7.77 EUR	-0.09 EUR
EUA (December-2017-Future)	7.68 EUR	7.77 EUR	-0.09 EUR
CER (Spotmarket)	0.17 EUR	0.17 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	63.72 USD	63.42 USD	+0.30 USD
EURO (Currency, Forex)	1.1890 USD	1.1930 USD	-0.0040 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 have 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. These 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 Ladies and Gentlemen,

Close to the end of the world climate conference in Bonn, Great Britain and Canada initiated a voluntary covenant of 18 nations to start waiving coal power, including our neighbouring country France. Germany, which has led the renewable power movement sooner, justifies their dependency from coal power, what makes it impossible to reach the self-made climate protection targets.

Apart from that, there was no other big things, albeit the basics of proving the goal achievements of the national reduction targets became discussed. They will be undersigned next year in Poland.

In Germany, last night failed the coalition negotiations, because the liberal party FDP became aware of irreconcilable differences on too many points after four weeks of discussions. Since social party SPD still don’t want to take further responsibility to govern, there are only two possibilities left, namely new elections or a minority government, which contains the risk of standstill for important political intensions. Anyhow, the failure of the negotiations will impair the position of chancellor Angela Merkel. The upcoming weeks will become worthwhile, even when instant needed political renewals will be paused.

The quotes of European carbon emission allowances became slightly better against the week before and closed at 7.48 Euro.

 

(Average Quotes Exchange / OTC)
Instrument	2017-11-10	2017-11-10	Change
EUA (Spotmarket)	7.48 EUR	7.40 EUR	+0.08 EUR
EUA (December-2017-Future)	7.48 EUR	7.40 EUR	+0.08 EUR
CER (Spotmarket)	0.17 EUR	0.17 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	62.69 USD	63.61 USD	-0.92 USD
EURO (Currency, Forex)	1.1794 USD	1.1664 USD	+0.0130 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 have 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. These 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 Ladies and Gentlemen,

Last Sunday was halftime at the 23^rd Conference Of Parties (COP23) and at the beginning of last week, the first reasonable results have been adopted. Among others initiated Germany the worldwide biggest forestation of to protect the climate. Until 2020 shall be 150 million hectare wood reforested, until 350 million hectare to change carbon dioxide into oxygen by photosynthesis of the trees.

Now, since Syria also signs the Paris climate agreement, solely the USA is isolated in that matter. But the former Gouverneur of California, Arnold Schwarzenegger, underlined in his role as representative of a network of important US-states and cities, that they will follow the way of fighting climate change ambitious. Schwarzenegger provides in his age of 70 still a huge energy to put his targets into practice. Together with former US-presidential candidate Al Gore, they showed, that is no way into future without renewable energy and emission free transport sector.

On Wednesday the final points of the reform of the European emissions trading system became defined. From 2021 on, the yearly reduction of emission allowances will be reduced by 2.2% after current 1,74%. This will reduce the yearly total volume by 48 million certificates. In 2021 the cap will reduce 1.8 billion allowances and at the end of trading period four, the cap sill be reduced by 1.3 billion certificates. That means, that EU-ETS compliance companies have the allowance to emit 1.3 billion tons of carbon emission or equivalents maximum. Also the carbon leakage rules became new defined to prevent the movement of companies out of the EU. Furthermore funds for innovation and modernisation was decided. They will get financed by a total of 710 million emission allowances. The earnings of these allowances will be paid to member states and companies for investments into climate protection measures.

The market reacts, as market does on these foreseeable results, after it became certainty. Speculative position was closed by profit taking. After the increase of the previous week of 10%, the EUA lost 6% on weekly basis.

 

(Average Quotes Exchange / OTC)
Instrument	2017-11-10	2017-11-03	Change
EUA (Spotmarket)	7.40 EUR	7.88 EUR	-0.48 EUR
EUA (December-2017-Future)	7.40 EUR	7.88 EUR	-0.48 EUR
CER (Spotmarket)	0.17 EUR	0.17 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	63.61 USD	62.18 USD	+1.43 USD
EURO (Currency, Forex)	1.1664 USD	1.1608 USD	+0.0056 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 have 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. These 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