Emissions Trading / Carbon Market News (06/04/2020)

Dear Sirs and Madams,

Around 800 million tonnes of greenhouse gases were emitted in Germany in 2019, which corresponds to a 6.3% decrease compared to 2018, as the preliminary assessment by the Federal Environment Agency shows. This means a decrease of 35.7% compared to 1990.

The energy industry in particular contributed to this with a reduction of approx. 17%, which was mainly due to the lower use of coal due to the higher prices for emission rights, but also to the higher share of renewable energies.

In the transport and building sectors, on the other hand, there were increasing carbon emissions, not least due to the sales figures for high-performance motor vehicles and SUVs.

So far, the year of the financial and economic crisis 2009 was the year with the largest decrease in greenhouse gas emissions, which will now be followed by 2019.

How big the decline will be in 2020 cannot yet be estimated, since nobody can estimate with any certainty when the crisis mode will be released and the economy can pick up speed again. In addition, it is still completely uncertain how high the direct economic effects and their collateral damage will be.

This will also determine the prices for carbon emissions allowances in the coming weeks, which have shown a first bottoming in the past week. The extent to which this continues depends not least on political decisions taken at national and European level to alleviate the crisis in Europe.

  (Average Quotes Exchange / OTC)   
EUA (Spotmarket)16.31 EUR17,86 EUR+1.55 EUR
EUA (December-2019-Future)16.39 EUR18,06 EUR+1.67 EUR
CER (Spotmarket)0.29 EUR0,31 EUR+0.02 EUR
ICE Brent Crude Oil (Benchmark Future)28.15 USD34,95 USD+6.80 USD
EURO (Currency, Forex)1.1169 USD1,0802 USD-0.0367 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