Emissions Trading / Carbon Market News (16/11/2020)

Dear Sir or Madam,

The German company Biontech and its US partner Pfizer announced an apparently groundbreaking success in the corona vaccine field at the beginning of last week. The innovative mRNA vaccine is expected to provide more than 90% protection against Covid-19. The experts are positively surprised and speak of “extraordinary” results and a “giant leap forward”. Both the speed of development and the efficiency are exceptionally high, and the otherwise numerous and vocal sceptics are relatively reluctant.

This optimism is of course balsam for the markets battered by the pandemic. On the other hand, however, we should not expect too much euphoria at this stage, as the official test procedure is of course still ongoing and approval is not expected before the beginning of next year, at least not in Europe. Even this may sound very optimistic, but there are significant social challenges ahead, especially until then.

When the first reports of the new virus from China started to circulate almost a year ago, one fact was particularly worrying: the Chinese New Year regularly leads to the world’s largest travel season, with hundreds of millions of travellers. Traditionally, Chinese families gather together and it is not unusual for annual holidays to be used to return home from the most distant parts of the world. This will present the Chinese authorities with a huge logistical and socio-political problem in early 2021.

This year’s Christmas could play a similar role in Europe, with similar traditions. Intensive shopping trips, combined with a visit to a Christmas market and the obligatory family and friends meetings could once again greatly accelerate the spread of the corona virus – just before a vaccine becomes available. In some European countries, however, the effects of the second wave are already frightening.

The CO2 market still benefited a little from the election victory of US President-elect Joe Biden last week. But mainly the news of the breakthrough of the corona vaccine boosted the price, although it is still too early to speak of a real breakthrough.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)25.43 EUR26.36 EUR+0.93 EUR
EUA (December-2020-Future)25.45 EUR26.38 EUR+0.93 EUR
CER (Spot-Market)0.29 EUR0.29 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)39.67 USD42.70 USD+3.03 USD
EURO (Currency, Forex)1.1870 USD1.1834 USD-0.0036 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