Emissions Trading / Carbon Market News (19/07/2021)

Dear Sir or Madam,

Just last week we were able to report on positive movements in coal consumption and CO2 emissions. However, there are hardly appropriate words to comment on the tragic events in connection with the extreme weather conditions in Germany, the Netherlands, Belgium and Austria in a carbon market report. We can only hope that politicians and lobbyists, who until now have always found pseudo-justifications for a stereotypical “business as usual”, will now use all their intelligence and energy to implement climate neutrality measures as quickly as possible. No job can be as valuable as a human life and no positive corporate balance sheet can outweigh the damage caused by the power of nature when it turns against man.

This is directly linked to the hope that the measures summarised by the EU Commission under the leitmotif “Fit for 55″ will not be ” improved” on the way to legal form, as has been the case up to now, until hardly anything of their substance remains. The opposite should now be the case.

With the measures, which were presented last Wednesday by no less than five EU Commissioners together with Commission President Ursula von der Leyen and her responsible representative Frans Timmermans, the EU Commission wants to achieve the climate targets for 2030. By then, emissions of greenhouse gases are to be reduced by 55 percent compared to 1990. According to Ms von der Leyen, this would make Europe the first continent to present a comprehensive architecture for achieving its climate goals. And just as in Europe the extreme heat and forest fires on other continents are being taken note of, in the USA, China and wherever else the events from the Eifel should be understood as something like a final warning.

A look at the carbon market last week leads via the oil price. After the producing nations known as Opec+ settled their dispute and agreed on a significant increase in oil production in view of the recovery of the world economy, the oil price consequently fell by several dollars. This also pulled the CO2 price a little further down. However, there was no clear correction, but rather led to a sideward movement, which seems to be waiting for a clear price signal.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)54.17 EUR52.87 EUR-1.30 EUR
EUA (December-2021-Future)54.26 EUR52.96 EUR-1.30 EUR
CER (Voluntary Spot-Market ø)2.66 USD2.66 USD+0.00 USD
VER (Gold Standard Spotmarkt ø)14.99 USD14.99 USD+0.00 USD
ICE Brent Crude Oil (Benchmark Future)75.62 USD73.20 USD-2.42 USD
EURO (Currency, Forex)1.1876 USD1.1805 USD-0.0059 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