Emissions Trading / Carbon Market News (03/05/2021)

Dear Sir or Madam,

April 29, 2021 has the potential to go down in history, because for the first time the German Federal Constitutional Court granted the complaints of the young climate protection activists and thus passed an unexpected judgment.

The core of the judgment is that legislative measures for climate protection after 2030 must be regulated in order not to unnecessarily hinder the freedom and life of young people and the following generations in the future. The highest German court has set a deadline for this at the end of next year.

By 2030, Germany is already obliged to reduce greenhouse gas reductions by 55% compared to 1990 and corresponding measures have already been introduced, such as national emissions trading since the beginning of this year, which now also prices emissions from the transport and building sectors.

But this decision will not only point the way for the period after 2030, it will also place a special focus on climate protection in the near future.

In addition, this judgment has fundamentally called into question, which will lead to a serious loss of freedom for today’s children and young people in the future.

Does today’s generation of financially better off adults have the right to drive on the autobahn in a completely oversized car with a combustion engine and a speed of 250 and accept particularly high CO2 emissions in the process? Does we now have the right to travel several times a year by plane and do today’s adults not have to put up with the question of why they allow such exorbitant meat consumption, even though factory farming is one of the largest emitters of greenhouse gases?

The judgment of the Federal Constitutional Court made this clear. In the future, this freedom can be forfeited to protect the climate and future generations, as the foundations of life for future generations must be handled carefully. These livelihoods are to be left to posterity in a state that does not expect children of today and future generations to maintain conditions worth living in on this planet just at the price of radical abstinence.

The young plaintiffs won by convincing the court that our current lifestyle with factory farming, the consumption of unsustainable products and the burning of fossil fuels acutely endangers a future worth living for these children and adolescents.

It would therefore be more than astonishing if the pricing of greenhouse gas emissions did not affect other sectors in the future.

The deadline for submitting carbon emission allowances for 2020 ended last Friday, which was also the last year of the third trading period of the European emissions trading system ETS, which began in 2013.

At 49.41 Euros, the price for one ton of CO2 emissions reached a new all-time high on Friday and closed with a weekly plus of 4% at 48.75 euros on the spot market.

But anyone who thought the rally would be over by the end of the submission period is mistaken this morning, as the market is working its way towards the 50 Euro mark. It remains to be seen whether this will lead to profit-taking and a consolidation of the course.

  (Average Quotes Exchange / OTC)   
Instrument16/04/202123/04/2021Change
EUA (Spot-Market)44.42 EUR46.90 EUR+2.48 EUR
EUA (December-2021-Future)44,33 EUR46.95 EUR+2.62 EUR
CER (Spot-Market)0.62 EUR0.63 EUR+0.01 EUR
ICE Brent Crude Oil (Benchmark Future)66.69 USD66.05 USD-0.64 USD
EURO (Currency, Forex)1.1980 USD1.2097 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 has usually in Spot Market a visible spread. CERs CP2 are eligible in ETS until end of April 2021 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.

With kind regards,

Advantag Services GmbH

Fridays for Future

Dear Lady or Sir,

In Germany, the average temperature has already risen by 1.5 ° C compared to pre-industrial times, globally by 1.0 ° C.

An active fight against global warming, and thus against man-made greenhouse gas emissions, is therefore the greatest challenge in human history.

The management of Advantag has therefore decided to exempt all employees participating in the worldwide climate strike today.

We therefore ask for your understanding, if we are only partially accessible today.

With kind regards,

Advantag Services GmbH

Telephone System Fault Solved

Dear Sir or Madam,

The fault of the telephone system has been corrected in the meantime and we are again under our usual phone number +49 (0) 2831.1348220 reachable.

Thank you for your understanding.

 

Best regards,

Advantag Group

Emissions Trading / Carbon Market News (2017-11-27)

Dear Ladies and Gentlemen,

The urgently needed reform of the EU Emissions Trading System (EU-ETS) has cleared a further hurdle. The constant representatives of the EU member states /COREPER) ratified the reform plans of the EU-ETS as expected with towering majority. Solely Poland, Hungary and Croatia did not vote to adopt the reform plans.

Now it is anticipated, that the European Council and the European Parliament will vote also positive shortly, what could happen this week. Until middle of December, the plenary session should pave the way for the realization as well.

At the beginning of the last trading week, the failed coalition talks in Germany strained the emissions trading market firstly, but regained after upcoming news about the British backing of the EU-ETS reform.

While energy market prices are rising, the EU-Emission Allowances rose nearly 4% against the final quotation of the week before and ended last week at 7.77 Euro per EUA.

 

(Average Quotes Exchange / OTC)
Instrument 2017-11-24 2017-11-17 Change
EUA (Spotmarket) 7.77 EUR 7.40 EUR +0.29 EUR
EUA (December-2017-Future) 7.77 EUR 7.40 EUR +0.29 EUR
CER (Spotmarket) 0.17 EUR 0.17 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 63.42 USD 63.61 USD +0.73 USD
EURO (Currency, Forex) 1.1930 USD 1.1664 USD +0.0136 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

 

Emissions Trading / Carbon Market News (2017-11-06)

Dear Ladies and Gentlemen,

Today begins the World Climate Conference COP23 in Bonn, where it will take place for the island nation Fiji. There will be expected 25,000 participants from 200 countries. One of the targets of the conference is to find ways to comply with the Paris Climate Agreement from 2015.

That it will be a hard way is not only caused by ignoramuses like US-President Donald Trump. Also Germany, which proclaimed to play a leading role for climate protection in the past, will fail to reach the goal to reduce greenhouse gas emissions by 40% against 1997. Only 32% seems to be realistic on current calculations.

And this has multiple reasons. On the one hand, the continuing economic upswing of the last years and the exit from atomic energy on the other hand are main reasons, because it will lead to a higher usage of fossil energy as brown coal. And the low prices for European carbon emission allowances make the usage of coal more economically than energy production by natural gas, what would reduce the greenhouse gas emission by one third. Not to speak about the sense of driving kids with a two tons heavy SUV with 400 HP in the kindergarten, three kilometres away.

As long as the expansion of renewable energy is not enough to supply whole Germany with clean power with continuing stability of the national electricity grid, Germany would have to import atomic energy and coal based energy from their neighbours. This would be also no sustainable way in respect of environmental protection.

Now it remains to be seen, how the other countries will show their positions, after Germanys expected miserable fail to keep the own reduction targets alive and the exit of the USA from Paris climate agreement. Countries like Poland, which produce the most of their energy by coal, hang-up the European negotiations for a better climate policy deeply and perhaps they would exit the Paris agreement too, if it would not be harmfully for the lucrative continuance in the European Union.

Wednesday this week, the negotiation regarding the future of the European Emissions Trading System will continue. In the run-up, last week prices for European Emission Allowances EUA rose strongly by 10%, supported by stronger energy.

 

(Average Quotes Exchange / OTC)
Instrument 2017-11-03 2017-10-27 Change
EUA (Spotmarket) 7.88 EUR 7.17 EUR +0.71 EUR
EUA (December-2017-Future) 7.88 EUR 7.17 EUR +0.71 EUR
CER (Spotmarket) 0.17 EUR 0.18 EUR -0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 62.18 USD 60.33 USD +1.85 USD
EURO (Currency, Forex) 1.1608 USD 1.1609 USD -0.0001 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