Emissions Trading / Carbon Market News (01/07/2019)

Dear Sir or Madam,

The current heatwave in Europe is exceptional for the end of June. For example, 45.9 ° C was measured on Friday in Gallargues-le-Montueux in southern France, a new nationwide heat record. And also in Germany, the weather was much hotter last weekend than in June, yesterday in Bernburg 39.6 ° C were reached. The entire June in Germany was 4°C warmer than the long-term average and the continuing drought in parts of Germany endangered the drinking water supply of individual communities already at the beginning of the summer.

In the past week, the interim negotiations in Bonn ended, which should further advance the implementation of the Paris Agreement on Climate Change. At the same time, the World Climate Change Conference (COP25) was prepared in December in Santiago de Chile. An important point here were rules for the international emission trading markets, which, however, could not finally reach a draft resolution.

European emission allowances picked up again last week and ranged between EUR 25.21 and EUR 27.48. On a weekly basis, they closed with a gain of just under one euro. Last Tuesday, the auction on EEX of 2,775,500 EUA failed due to lack of demand, which is why these certificates were auctioned last Thursday and in three auctions this week. Thus, a total of 18,046,000 EUAs will be offered this week instead of the originally planned 15,964,000 EUAs.

(Average Quotes Exchange / OTC)      
Instrument 21/06/2019 28/06/2019 Change
EUA (Spotmarket) 25.24 EUR 26.23 EUR +0.99 EUR
EUA (December-2019-Future) 25.30 EUR 26.28 EUR +0.98 EUR
CER (Spotmarket) 0.20 EUR 0.21 EUR +0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 62.25 USD 66.72 USD +1.47 USD
EURO (Currency, Forex) 1.1367 USD 1.1371 USD +0.0004 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. 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. 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