Emissions Trading / Carbon Market News (16/09/2019)

Dear Sir or Madam,

Next Friday, the German grand coalition of CDU and SPD wants to present their concept for less CO2 emissions. On this day demonstrations of “Fridays for Future” as well as other climate protection alliances take place in many cities in Germany and worldwide.

In particular, the steering instruments are under discussion here, with either a fixed carbon tax or the more flexible national emission allowance trading in particular for the transport sector and the real estate sector. Among other things, negotiations will continue this week on climate-friendly heating, more attractive public transport and electromobility.

The fact that electromobility in particular can make a major contribution is shown by a calculation by the German motor vehicle trade magazine “Krafthand”, which has determined exactly how much electricity is needed to supply six liters of diesel – a value which a normal diesel car costs on average for 100 kilometers needed. So if you include oil production, transport to the refineries, processing there and transport to the gas station, you can get six liters of diesel to 42 KWh of electricity without driving a kilomaster. With 42 kWh of electricity, for example, you can drive more than 300 kilometers with, for example, the BMW i3 electric car. And that at green power entirely without CO2 emissions.

Following the attacks on two oil rigs in Saudi Arabia this past weekend, the price of crude oil rose sharply this morning, rising in some cases more than 10% against Friday’s close. The EUA futures have also benefited from the fact that they exceeded the € 27 mark at the start of trading. The development of the oil price could continue to cause movement in the energy markets and also in the CO2 prices this week.

  (Average Quotes Exchange / OTC)      
Instrument 06/09/2019 13/09/2019 Change
EUA (Spotmarket) 25.06 EUR 26.33 EUR +1.27 EUR
EUA (December-2019-Future) 25.08 EUR 26.38 EUR +1.30 EUR
CER (Spotmarket) 0.21 EUR 0.21 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 61.63 USD 60.26 USD -1.37 USD
EURO (Currency, Forex) 1.1026 USD 1.1073 USD +0.0047 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