Emissions Trading / Carbon Market News (12/10/2020)

Dear Sir or Madam,

Research data from the Earth observation program Copernicus has shown that September 2020 was the warmest September ever recorded globally and, with a plus of 1.3 ° C, is close to the critical level of 1.5 ° C global warming.

Now a study by the University College in London together with the CDP – Carbon Disclosure Project has determined the costs of climate change. Without economic change and a serious reduction in global greenhouse gas emissions, annual costs would amount to more than 4 trillion US dollars by 20170. In 2200, the cost would even exceed $ 30 trillion. Furthermore, a decline of the global gross domestic product of 10% is to be expected, in 2100 the decline could already reach 25%.

If global warming can be kept below 2 ° C by the measures of the Paris Climate Protection Agreement, the annual global costs would be significantly cheaper at 1.5 trillion euros.

September 2020 should therefore be cause for concern from a purely economic point of view.

In the past week of trading, the prices for European pollution rights showed up under the pressure of the high auction volume of almost 22 million certificates and a lack of bullish news. This week, 14.4 million EUA will be auctioned on four trading days, which did not spread optimism either on Friday or at the start of trading today. The prices fell below the EUR 25.50 mark in the first few minutes of trading and, from a purely technical point of view, could break the EUR 25 mark.

This could be a welcome opportunity for buyers who want to stock up on certificates for 2020 already now.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)27.01 EUR25.81 EUR-1.20 EUR
EUA (December-2020-Future)27.03 EUR25.71 EUR-1.32 EUR
CER (Spot-Market)0.30 EUR0.29 EUR-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)39.14 USD42.82 USD+3.68 USD
EURO (Currency, Forex)1.1714 USD1.1823 USD+0.0109 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