Emissions Trading / Carbon Market News (16/03/2020)

Dear Sir or Madam,

In the past few days, events in Europe and the rest of the world have developed with unprecedented dynamism in relation to the corona virus.

Apart from the effects on social life and health care, the economy in particular will suffer significantly from the events. But now not only large companies from the manufacturing or service sectors are affected, it will also burden small and medium-sized companies.

One only has to think of the restaurants, bars, retailers and handicraft businesses, which in many cases do not have sufficient liquidity reserves to survive a business shutdown even for a few weeks. Even if the German government and the EU want to take historic measures to contain the economic and financial crisis, many smaller companies will still be hard hit because aid loans will also have to be repaid.

Financial markets closed with a plus sign after last week’s crash last Friday, and the Nikkei in Tokyo posted only a slight loss. However, the nervousness is likely to result in further losses, which is not surprising given the dynamic developments at the political level.

To avoid Italian conditions, further cuts appear to be unavoidable in Germany from the current perspective, which should not lead to buyers returning to the financial markets.

While the CO2 emission rights had held up fairly well last week and survived the crash on the stock and energy markets with relatively moderate losses, they slumped by more than 8% on Monday morning at the start of trading. The further development in Europe will certainly remain the most important factor in the coming days and weeks.

The Advantag team will continue to be available for you as usual in the coming days.

  (Average Quotes Exchange / OTC)      
Instrument 06/03/2020 13/03/2020 Change
EUA (Spotmarket) 23.40 EUR 21.92 EUR -1.48 EUR
EUA (December-2019-Future) 23.42 EUR 21.94 EUR -1.48EUR
CER (Spotmarket) 0.29 EUR 0.29 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 45.46 USD 35.07 USD -10.42 USD
EURO (Currency, Forex) 1.1284 USD 1.1100 USD +0.0184 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