Emissions Trading / Carbon Market News (04/10/2021)

Dear Sir or Madam,

The preparatory conference for this year’s World Climate Conference in Glasgow took place in Milan from September 30th to October 2nd. Participating ministers from several countries spoke out in favor of concluding negotiations on international trade in emissions certificates in line with the Paris Agreement on Climate Change. The representatives formulated the clear expectation that all technical work must now move forward quickly in order to take all outstanding decisions on the conclusion of the Paris climate agreement in Glasgow. There was also the expectation that the process for the new climate finance target for the period after 2025 would be drawn up in Glasgow and that sufficient consideration would also be given to the damage caused by climate change.

In addition to the conference, almost 400 young people from 186 countries discussed their expectations of climate policy and the outcome of COP 26 at “Youth4 Climate 2021” and presented their demands to the ministers meeting in Italy.

Meanwhile, there are also talks in Brussels calling for institutional speculators to be curtailed on the price development of CO2 emission rights in order to reduce the effects of the high prices of the energy market in connection with emission rights on European households with low incomes. A debate is to take place on October 6th in the EU Parliament with representatives of the European Commission and representatives of the Council of Europe of the member states, at which this will be discussed. In the past week, more than 300 mutual funds reported holding positions in the European carbon market.

Last Tuesday, the prices for EUAs reached a new all-time high of 65.77 Euros, but had to fall significantly again by the end of the trading week due to profit-taking, which is why the market on a weekly closing price basis lost 1.4% compared to the previous week.

It should be interesting in the coming weeks how the debate about speculative funds will develop and whether and when there could be position limits or similar restrictions.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)62.78 EUR61.99 EUR-0.79 EUR
EUA (December-2021-Future)62.94 EUR62.04 EUR-0.90 EUR
CER (Voluntary Spot-Market ø)3.50 USD3.50 USD+0.00 USD
VER (Gold Standard Spotmarkt ø)14.49 USD14.49 USD+0.00 USD
ICE Brent Crude Oil (Benchmark Future)78.03 USD79.14 USD+1.11 USD
EURO (Currency, Forex)1.1720 USD1.1592 USD-0.0128 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