Emissions Trading / Carbon Market News (07/09/2020)

Dear Sir or Madam,

Tree death in Germany, which has particularly affected spruce trees in many parts of the country due to the persistent drought since 2018, is a direct consequence of climate change. Even if there was a little more rainfall this year, it was unevenly distributed.

A major problem can be identified in those parts of the country where below-average precipitation meets above-average temperatures. Across Germany, August 2020 was on average 3.4 ° C warmer than the long-term average and just as warm as in 2015 or in the drought summer of 2018.

According to the Helmholtz Center for Environmental Research in Leipzig, the situation in deeper layers around 1.80 meters is particularly critical, with the exception of the Bavarian south. This is where the drought is most felt, especially on the Lower Rhine and in Eastern Germany. But also in the upper classes, which are of particular importance for agriculture, North Rhine-Westphalia, among others, has major problems, such as the drought monitor of the Helmholtz Center at https://www.ufz.de/index.php?de=37937 shows.

In the current trading week, 21.7 million certificates are being offered for auction, including 810,500 EUAA for the aviation industry, which put the price for emission rights under pressure in the past week, as did falling energy prices.

  (Average Quotes Exchange / OTC)   
EUA (Spotmarket)29.48 EUR27.41 EUR-2.07 EUR
EUA (December-2020-Future)29.47 EUR27.36 EUR-2.11 EUR
CER (Spotmarket)0.29 EUR0.29 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)45.85 USD42.31 USD-3.54 USD
EURO (Currency, Forex)1.1901 USD1.1839 USD-0.0062 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