Emissions Trading / Carbon Market News (01/11/2021)

Dear Sir or Madam,

The Federal Republic of Germany is the only economically significant country in the European Union to pay compensation for failure to achieve the climate targets in 2020.

Germany is obliged. To acquire a total of 22 million emission units (AAU) from countries that have exceeded their greenhouse gas reduction targets. The German Federal Environment Ministry is now in negotiations with various states regarding the acquisition of emission certificates.

Yesterday in Rome the G20 states agreed on a compromise, which assumes that the target of global warming can be limited to a maximum of 1.5° C. It was not possible to agree on specific measures.

In order to achieve the goal anyway, the 26th Conference Of Parties, COP26, started in Glasgow on Sunday. Expectations with regard to the negotiations regarding the implementation of the Paris Climate Agreement of 2015 are not particularly high. The statements made by Russian President Putin, who wants to make his country climate-neutral by 2060, are all the more surprising.

In the past week of trading, the prices for European emission rights on a weekly closing price basis rose moderately despite the weakening oil prices and moved in a range between EUR 57.92 and EUR 60.20 for the December future. The next few days will show whether the Glaswegian negotiations will have an impact on prices.

This week again, 11.4 million EUA will be auctioned on the Leipzig EEX.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)58.24 EUR58.69 EUR+0.45 EUR
EUA (December-2021-Future)58.27 EUR58.71 EUR+0.44 EUR
CER (Voluntary Spot-Market ø)4.78 USD4.78 USD+0.00 USD
VER (Gold Standard Spotmarkt ø)13.69 USD13.69 USD+0.00 USD
ICE Brent Crude Oil (Benchmark Future)85.86 USD83.69 USD-2.17 USD
EURO (Currency, Forex)1.1645 USD1.1561 USD-0.0084 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 and VERs are average prices in the voluntary carbon offsetting market (eco securities). 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