Emissions Trading / Carbon Market News (03/02/2020)

Dear Sir or Madam,

The press has reported much less about “Fridays for Future” in the past days and months. It was also clear to Greta Thunberg and her colleagues that all the hype is over. But what remains in the end?

More than you could expect at the beginning. In all of the discussions, some of which are strongly polarized, a change has occurred in many areas. In addition to climate protection, which every major party in Germany now wants to prevent with the exception of the AfD, more and more people are considering the sustainability of their actions. Even the ADAC is turning away from its stance against a general speed limit, which would have been unthinkable just a few years ago.

But more importantly – young people are becoming more political again and give climate protection a high priority. According to a study by the Federal Environment Agency presented last week, it is very important for 45 percent and rather important for another 33 percent. From the point of view of young people, environmental and climate protection also has a positive impact on social goals. For example, it is particularly important for 65 percent that future generations without adequate environmental and climate protection would be burdened by massive environmental problems.

The prices for CO2 emission allowances have decreased repeatedly in the past week compared to the previous week. Here Brexit does not allow bullish sentiment, even if the British only leave the European emissions trading system at the end of the year at the end of the third trading period. The British auctions should also start again at the end of March at the latest.

In addition, the significantly lower oil price, which is so worrying for OPEC that it is considering moving to its next meeting, together with weak gas prices, is putting pressure on prices.

The current trading week also starts in the red, although the technical indicators are currently bearish.

  (Average Quotes Exchange / OTC)      
Instrument 24/01/2020 31/01/2020 Change
EUA (Spotmarket) 24.36 EUR 23.81 EUR -0.55 EUR
EUA (December-2019-Future) 24.45 EUR 23.88 EUR -0.57 EUR
CER (Spotmarket) 0.21 EUR 0.22 EUR +0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 60.50 USD 56.62 USD -3.88 USD
EURO (Currency, Forex) 1.1025 USD 1.1090 USD +0.0065 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