Emissions Trading / Carbon Market News (13/01/2020)

Dear Sir or Madam,

As you read our market report, your computer, server, and network are consuming power. The same applies to the Internet, the associated data centers and all associated technologies. According to the Federal Environment Agency, German internet and computer use generates a total of around 30 million tons of CO2 annually. That is about 20% more greenhouse gases than a whole country, such as Croatia, causes in annual greenhouse gas emissions. According to the Parisian Shift Project, the share of emissions from the digital economy is already 3.7% of total global greenhouse gas emissions and is growing rapidly by around 9% annually. In five years, the share is expected to be 8% of global greenhouse gas emissions.

In particular, cryptocurrencies such as Bitcoins or Ethereum have a very high energy consumption in their global computing power. But streaming services for films and music are also increasing every year, with a feature film with more than 6 kilos of CO2 on the list.

Better technical solutions are required here as well as the use of CO2-neutral energy and the compensation of unavoidable greenhouse gases in order to reduce the carbon footprint to a minimum. The topic “green Internet” will certainly be an issue in the future.

In the past trading week, the defused political situation in relation to Iraq has again influenced the price of crude oil, which has fallen by more than 5%, as Tehran’s previous reactions have been moderate. In the course of this and due to the continued mild temperatures in Central Europe, the prices for CO2 emission allowances also decreased, but less strongly than was expected.

It will be interesting to see how the market will deal with the relatively high auction volume of around 17 million EUA and 0.8 million EUAA this week.

  (Average Quotes Exchange / OTC)      
Instrument 03/01/2020 10/01/2020 Change
EUA (Spotmarket) 24.86 EUR 24.12 EUR -0.74 EUR
EUA (December-2019-Future) 24.98 EUR 24.21 EUR -0.77 EUR
CER (Spotmarket) 0.22 EUR 0.22 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 68.63 USD 65.10 USD -3.53 USD
EURO (Currency, Forex) 1.1161 USD 1.1119 USD -0.0042 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