Category: Corporate News

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

 

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

Dear Ladies and Gentlemen,

It had been a long time in coming, that both of the German governing parties would be faced with opposing wind, but such massive losses was not expected in the latest prognoses. Only every third elector opted for the Christian Democratic CDU/CSU and only every fifth for the Social Democratic SPD. A continuation of the grand coalition of CDU/CSU and SPD would be possible with 53.5%, but SPD chancellor candidate Martin Schulz refused steadfastly to do. That might be understandable from the point of view of his party, but it does not correspond to democratic values. One cannot rule out the possibility of new elections, which would lead the social democrats one step more to insignificance.

Since SPD became a bad looser and negated a continuation of the grand coalition, federal chancellor Angela Merkel has to focus an alliance of CDU/CSU, the liberal party FDP and the environmental party of the green. The leader of the Green Party and the FDP showed their differences yesterday evening after the election, but declared their basically willingness to negotiate. Especially by the topic climate protection, FDP-Chef Christian Lindner declared, that his party will support the Paris climate agreement, but not with national solo actions. If it would lead finally to such a government coalition, there would be no danger for a continuation of German climate policy.

The market of European emission allowances reacts positive and showed a small plus on Monday morning.

Last week on the other hand, the EUA market was bearish in the second half on swinging trading sessions, what was caused not least by weaker German power prices.

 

(Average Quotes Exchange / OTC)
Instrument	2017-09-22	2017-09-15	Change
EUA (Spotmarket)	6.64 EUR	6.94 EUR	-0.30 EUR
EUA (December-2017-Future)	6.65 EUR	6.95 EUR	-0.30 EUR
CER (Spotmarket)	0.20 EUR	0.20 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	56.79 USD	55.57 USD	+1.22 USD
EURO (Currency, Forex)	1.1947 USD	1.1941 USD	+0.0006 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