Emissions Trading / Carbon Market News (02/06/2020)

Dear Madam or Sir,

April 2020 was the warmest April since weather records started in 1850. The scientists at “Berkeley Earth” are currently assuming that 2020 will be the warmest year so far in weather records.

At the end of last week, we also received good news from the Federal Environment Agency – the decrease in greenhouse gas emissions from German plants covered by mandatory emissions trading was an impressive 14% last year compared to the previous year.

The decisive point here was the control effect of the significantly increased price of CO2 certificates. Coal electricity had to make way for renewable energies more and more, which led to significant savings of 18% CO2 emissions in the past year compared to 2018.

The industry also saw a 4% decline to 119 million tons last year, which also applied to air traffic with only 9 million tons.

The overall decline in the EU was somewhat less, at around 9%, to 1.53 billion tons of CO2e, but the decline compared to 2005, at 36%, can be clearly seen across Europe and has thus already greatly exceeded the 21% saving target. The decline in emissions in the German area of ​​systems covered by emissions trading has so far been 30% compared to 2005.

Not least due to the effects of the corona pandemic, a significant decline in emissions is also to be expected this year, although special care must be taken in the coming years to ensure that there is no rebound in the event of a stronger increase in production. Effect is coming.

A sustainable orientation of the economy and the transport sector, which can be controlled through targeted tax and financial incentives, is therefore essential.

Last week, EUAs closed at the same level as the previous week. The auctions on EEX bring 13.9 million new EUAs to auction at four auctions on EEX in the shortened first week of June.

  (Average Quotes Exchange / OTC)   
EUA (Spotmarket)21.32 EUR21.31 EUR-0.01 EUR
EUA (December-2020-Future)21.40 EUR21.40 EUR+0.00 EUR
CER (Spotmarket)0.30 EUR0.32 EUR+0.02 EUR
ICE Brent Crude Oil (Benchmark Future)36.04 USD37.57 USD+1.53 USD
EURO (Currency, Forex)1.0901 USD1.1094 USD+0.0193 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