Emissions Trading / Carbon Market News (06/04/2021)

Dear Sir or Madam,

Germany’s much-discussed decisions to phase out coal-fired power generation are seen by many as having no alternative, others rate them as half-hearted and not a few complain about the immense costs involved. However, these decisions were made when CO2 emission certificates cost only a fraction of today’s market price. It was foreseeable that with a successfully functioning emissions trading system, coal would sooner or later become unprofitable as an energy source. The extreme price increases of the recent past made this scenario a reality sooner than many could have imagined. Whatever details may be criticized in connection with the coal phase-out, it was and remains inevitable. This is now being felt particularly hard by those governments that stubbornly wanted to maintain their coal production. This is now being felt particularly painfully by those governments that obstinately wanted to maintain their coal production.

Meanwhile, the carbon market continues to be driven more by the actions of a new class of investors than by fundamental data. They are obviously still betting on rising prices and undoubtedly already have the 50-euro mark in mind. It will therefore be interesting to observe whether there will be a drop in prices after the annual compliance closes at the end of April.

At the beginning of the new, short trading week, the market initially reacted clearly bullish and already rose again above 43 euros.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)41.63 EUR42.43 EUR+0.80 EUR
EUA (December-2021-Future)41,73 EUR42.47 EUR+0.74 EUR
CER (Spot-Market)0.50 EUR0.63 EUR+0.13 EUR
ICE Brent Crude Oil (Benchmark Future)64.47 USD64.64 USD+0.17 USD
EURO (Currency, Forex)1.1794 USD1.1815 USD+0.0021 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