Emissions Trading / Carbon Market News (15/11/2021)

Dear Sir or Madam,

The 26th World Climate Conference in Glasgow came to an end on Saturday after prolongation.

This time, as expected, only resolutions were passed, the content of which could be supported by all participating states, which is the ultimate problem of such conferences.

On Saturday, a final declaration was drawn up, which all states have signed up to. In particular, the focus was on phasing out energy generation from coal. A special request was made to abolish the inefficient subsidies for fossil fuels. The aim is to create a new economic model and to achieve the Paris goal of increasing global warming by a maximum of 1.5°C.

Experts and climate protectors are extremely skeptical of this and see a warming of 2.4°C by the end of the century as much more realistic if the current timetable is adhered to.

In addition to phasing out coal, other focal points were higher climate targets and financial support for developing countries. In addition, it was decided to help the developing countries, which are hardest hit, with adaptation.

Germany has also joined the “Global Methane Pledge” and is committed to reducing methane gas emissions, which are particularly relevant for the climate in the short term, by 30% by the end of the decade.

Last but not least, 24 states and several car manufacturers have decided not to sell any cars with internal combustion engines from 2040, in the leading sales markets even from 2035. Germany is not one of them and if there is no radical rethinking here in the coming years, the car manufacturers who continue to rely on the internal combustion engine will face fundamental existential problems.

It remains to be seen whether the international community of almost 200 participating states will actually manage to implement the measures on its own. However, this will only happen by channeling the flow of money in the direction of decarbonization and high prices for greenhouse gas emissions, but it will only be successful if social aspects are taken into account.

In the past week, the technicians in the market for EU emission rights prevailed again and let the price rise by almost four percent on the basis of the weekly closing price.

In addition to the coming Tuesday and Thursday, another five fixed price auctions will take place on the EEX at an issue price of 25 euros in German national emissions trading system. So if you are one of the distributors of fossil fuels in Germany, you should hurry now, because they can only make purchases on the Leipzig Energy Exchange until December 7th, 2021 at the latest.

We would be happy to assist you and, as a member of EEX, procure the required number of national emission certificates (NEZ) for you safely and conveniently.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)59.38 EUR63.27 EUR+3.89 EUR
EUA (December-2021-Future)59.39 EUR63.27 EUR+3.88 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)82.26 USD82.06 USD-0.20 USD
EURO (Currency, Forex)1.1569 USD1.1479 USD-0.0090 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