Category: Carbon Market News

Dear Ladies and Gentlemen,

Those who after the failed trialogue negotiations gathered that the price of carbon emission certificates would loose ground was more than wrong, as the last trading week showed. On the contrary, the market participants considered this circumstance rather as a little political flaw, which is hardly noticeable in the context of the general break-up mood. Since May of this year, the market is in a sustained upward trend, which has once again increased in momentum and volatility since the beginning of September, ie immediately after the summer break.

And this also applied to the trade in the last week. It started on Monday an impressive rally that began around the price of EUR 7.30 and marked a 21-month high on Thursday with a peak of EUR 8.05. On Friday, then profit takings pulled down the price to some EUR 7.50. However, taking into account that we were still under the six-euro mark at the beginning of September, even this correction was rather moderate.

Regardless of global political as well as national developments, traders seem to be focusing on the direct market environment in the ETS, which is marked by the official start date of the market stability reserve on 1 January 2019 and the ambitious regulations from the fourth trading period.

Almost a marginal note, but still worth mentioning is the decision of the new government of the Netherlands, which has just been constituted. They are therefore planning to shut all coal-fired power plants by 2030, and will launch their own price corridor for EUAs with a minimum price of EUR 18.00 from next year. While these measures will not have a direct impact on European emissions trading, they will undoubtedly have a signal effect.

 

(Average Quotes Exchange / OTC)
Instrument	2017-10-20	2017-10-13	Change
EUA (Spotmarket)	7.57 EUR	7.32 EUR	+0.25 EUR
EUA (December-2017-Future)	7.57 EUR	7.32 EUR	+0.25 EUR
CER (Spotmarket)	0.19 EUR	0.19 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	57.82 USD	57.12 USD	+0.70 USD
EURO (Currency, Forex)	1.1785 USD	1.1822 USD	-0.0037 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,

Calculations of the Environmental Ministry showed, that Germany will not reach the target of reduction of greenhouse-gases by 40% against 1990; they computed only a possible reduction of 32%. One of the main reasons are the ongoing use of coal power, which have still 43% by the German power mix despite the extension of renewable energy in Germany. That might have a coherence with the decrease of atom power.

Last Thursday, the trilogue of European Parliament, European Council and European Commission regarding the reform of the European Emissions Trading System happened. The long meeting, which 14 hours lasts, did not result in a final agreement. Especially the major point of energy production by coal power was a killing point, because Poland has not moved from his point of view by its coal based energy policy. The negotiations shall continue at unspecified point in time.

In forefront of the meeting, prices of European Carbon Emission Allowances rose up to nearby 7.60 Euro per ton and closed despite the disappointing result on weekly basis with a surplus of nearly 5%.

 

(Average Quotes Exchange / OTC)
Instrument	2017-10-13	2017-10-06	Change
EUA (Spotmarket)	7.32 EUR	6.99 EUR	+0.33 EUR
EUA (December-2017-Future)	7.32 EUR	7.00 EUR	+0.32 EUR
CER (Spotmarket)	0.19 EUR	0.19 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	57.12 USD	55.58 USD	+1.54 USD
EURO (Currency, Forex)	1.1822 USD	1.1733 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 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,

Andreas Kuhlmann from German Energy Agency, is the main initiator of a group of 15 energy experts, who require from the new elected German federal government innovative measures to encourage climate protection on a broad economic basis.

One of the central points of the proposal is a minimum price for all sectors to include for example transport sector, households or agricultures also, which are currently not included in the European Emissions Trading System. These revenues shall reduce taxes and charges and benefit the citizen by lower associated employer outlay.

This Thursday EU member states will meet for a final conference to complete the reform talks. Prior to this, the price of European Carbon Emission Allowances stays mostly stable.

 

(Average Quotes Exchange / OTC)
Instrument	2017-10-06	2017-09-29	Change
EUA (Spotmarket)	6.99 EUR	7.06 EUR	-0.07 EUR
EUA (December-2017-Future)	7.00 EUR	7.07 EUR	-0.07 EUR
CER (Spotmarket)	0.19 EUR	0.19 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	55.58 USD	56.69 USD	-1.11 USD
EURO (Currency, Forex)	1.1733 USD	1.1814 USD	-0.0081 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,

Quite accurate 30 years ago, the Montreal agreement for protection of the ozonosphere was signed.  Today, the ozone hole is no big talking point anymore. Scientists agree, that no later than at the middle of this century, the ozone hole will be at the same level as 1960. On one hand it was an important step for the global waiving of ozone-harmful chlorofluorocarbon (CFC), on the other hand a soon aid for the climate protection, because CFC is also extremely climate-harmful.

This success shows, that it´s possible for the international community, to fight negative human made environmental influences. This should have an inspiring example for the current global protection activities.

The prices of European emission allowances got raising strongly last week and reached a 20-month-high on last Tuesday at more than 7.70 Euro for short time per EUA. That was followed by profit taking, which finally leads to a small loss on weekly basis. Especially stronger energy prices for oil and power together with the ongoing talks to reform the EU Emissions Trading System ETS was the price-building factors.

Even the new trading week has started a little more mildly, because the air for the energy complex is getting thinner after the increase of the last weeks. That´s why one should keep an eye on the development of oil, gas and power prices.

 

(Average Quotes Exchange / OTC)
Instrument	2017-09-15	2017-09-08	Change
EUA (Spotmarket)	6.94 EUR	7.06 EUR	-0.12 EUR
EUA (December-2017-Future)	6.95 EUR	7.07 EUR	-0.12 EUR
CER (Spotmarket)	0.20 EUR	0.20 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	55.57 USD	53.71 USD	+1.86 USD
EURO (Currency, Forex)	1.1941 USD	1.2035 USD	-0.0094 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,

At the beginning of last week, the price of European pollution rights reached a half-year high of EUR 6.20, but then had to accept slight corrections day by day during the week. The traders thus anticipated the fact that from Friday onwards the full auction quantities came into the market. As a result, the carbon market closed considerably below the six-euro mark at EUR 5.83. The price on Friday fell even below the result of the auction of the morning, at which 5.88 EUR were signed. Twenty of the 23 bidders were able to take the 4.473.000 fresh certificates home, so there was no further pressure on the spot market from this side. In today’s early trading, the price tends slightly higher than the settlement price on Friday.

Today, the German chancellor is meeting with representatives of many municipalities threatened with driving bans for diesel cars. For the life and business location of Germany such prohibitions would be a more than serious setback. In this respect, the argument of the car makers is absolutely incomprehensible, according to which the measures adopted at the Diesel Summit would bring as many improvements for inner cities as driving bans. This is an attitude that only the car industry is able to have!

 

(Average Quotes Exchange / OTC)
Instrument	2017-09-01	2017-08-25	Change
EUA (Spotmarket)	5.82 EUR	6.08 EUR	-0.26 EUR
EUA (December-2017-Future)	5.83 EUR	6.09 EUR	-0.26 EUR
CER (Spotmarket)	0.20 EUR	0.20 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	52.73 USD	51.98 USD	+0.75 USD
EURO (Currency, Forex)	1.1860 USD	1.1931 USD	-0.0071 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