Emissions Trading / Carbon Market News (10/05/2021)

Dear Sir or Madam,

Last week, too, climate protection had a high priority in Germany’s political landscape. After the groundbreaking ruling by the Federal Constitutional Court the week before, politicians in the election year 2021 have now recognized that the issue can no longer be overlooked. New legislative proposals were promptly made, with the 11th Petersberg Climate Dialogue, which this year took place virtually in an environmentally friendly manner, also provided a corresponding stage on which ministers from 40 countries met. Chancellor Angela Merkel, British Prime Minister Boris Johnson and UN Secretary General Antonio Guterres also attended the meeting.

It ended on Friday with the call to make this year’s world climate conference COP 26 in Glasgow a success and to finally resolve all open points of the regulations under the Paris Agreement.

Federal Chancellor Dr. Angela Merkel stated that Germany should tighten its climate target for 2030 to a CO2 reduction of 65 percent and achieve greenhouse gas neutrality in 2045, which emerges from the draft for a new climate protection law, the key points of which the German Federal Environment Minister Schulze had presented shortly before. Merkel particularly emphasized that she sees global pricing of greenhouse gas emissions as an important step in the fight against climate change. And the host Boris Johnson sees climate protection as a kick start for a new industrial revolution; Great Britain has also tightened its climate targets significantly.

Ultimately, that will mean that greenhouse gas emission prices could hit triple digits in the not too distant future. European Commission Vice President Frans Timmermans on Friday downplayed the prospect that regulators might intervene on the bullish price of European emission allowances, saying that EUAs should trade even higher amid the bloc’s stricter emissions target for 2030.

This got the bulls going again and set a new all-time high at EUR 51.10 per EUA on the last trading day of the week, ignoring the fact that the 2020 compliance period ended on the Friday of the previous week. And the new trading week also begins with a significant plus above the 51 Euro mark.

Since the political will as well as the speculators and the market dynamics are difficult to predict, a solid procurement strategy for the coming years definitely makes sense in order to mitigate the blatant price fluctuation risks.

We would be happy to advise you on this and coordinate an appropriate procurement strategy with you.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)48.75 EUR50.45 EUR+1.70 EUR
EUA (December-2021-Future)48,84 EUR50.45 EUR+1.61 EUR
CER (Voluntary Spot-Market ø)1.87 USD1.87 USD+0.00 EUR
VER (Gold Standard Spotmarkt ø)13,71 USD13.71 USD+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)66.62 USD68.21 USD+1.59 USD
EURO (Currency, Forex)1.2018 USD1.2163 USD+0.0145 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. 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