Category: Carbon Market News

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

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