Emissions Trading / Carbon Market News (08/11/2021)

Dear Sir or Madam,

The first week of the World Climate Conference in Glasgow (COP26) is over and, as usual, opinions on what has been achieved so far are widely divided. A decision to limit methane emissions and a declaration on halting deforestation are among the notable highlights of the negotiations so far. Climate experts around the world never get tired of calculating how the announcements and adjustments made so far would affect the achievement of the Paris climate goals if strictly implemented. In this context, the International Energy Agency (ETA) and the University of Melbourne, for example, see some light at the end of the tunnel, as they all agree that the temperature increase should be limited to less than two degrees.

Of course, these are forecasts based on declarations of intent. It was, after all, an essential part of the Paris Agreement that nations should be allowed to decide for themselves what they approve and when they implement it to contribute their share to the goals. They now seem to be within reach, but what is decisive is the actual effort to finally reach the end of the tunnel.

Hardly any other issue illustrates this as clearly as the phase-out of coal production. In the public perception, this seems to be a kind of currency by which one can read off what progress is being made. This is certainly neither right nor fair, but it makes obvious that explanations and decision-making aids are urgently needed for a topic that is also historically so incredibly complex.

At the beginning of the last trading week, after a longer, stable sideways movement, there was again a significant correction on the carbon market. Important technical signals were broken through, but the downward trend was stopped at the 57-euro mark. The second half of the week was then marked by a nervous battle for the 60-euro line. This resulted in a slight plus on a weekly basis.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)58.69 EUR59.38 EUR+0.69 EUR
EUA (December-2021-Future)58.71 EUR59.39 EUR+0.68 EUR
CER (Voluntary Spot-Market ø)4.78 USD4.78 USD+0.00 USD
VER (Gold Standard Spotmarkt ø)13.69 USD13.69 USD+0.00 USD
ICE Brent Crude Oil (Benchmark Future)83.69 USD82.26 USD-1.43 USD
EURO (Currency, Forex)1.1561 USD1.1569 USD+0.0008 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