Emissions Trading / Carbon Market News (19/08/2019)

Dear Sir or Madam,

There is now growing awareness that for economies worldwide it is far more expensive to ignore climate change than to take countermeasures as soon as possible, which are economically damaging in the short term. Crop failure caused by periods of drought, flood damage, forest dying and even lack of snow in the mountains are already causing economic losses, which are even life threatening for companies. In addition, there are the already foreseeable burdens due to mass migration of people who are increasingly losing their livelihoods. Whenever politicians or lobbyists still reluctant to take swift political action to save money, the bill will not work out.

Many of the scenarios that scientists have been forecasting for years have even proven to be overly optimistic. According to recent satellite image and field observations, Swiss researchers have calculated that more than 300 million tonnes of ice melt every year. Iceland has even declared the world’s first glacier as dead. This means that his ice mass has become so light that he can no longer push forward. The glacier has not, as often observed, only regressed, but has become a simple, further melting ice field. The report recalls the fate of Lake Chad, which has shrunk by 90 percent since the 1970s, as a once-powerful and vital source of water supply for the region.

A look at the past trading week reveals an astonishingly sharp correction in the price of CO2 that we have not experienced for years in a month with reduced auction volumes. After being able to guess a rise above the 30-euro mark at the beginning of August, the bears took over the market and melted the important support at 28 euros, just like the aforementioned polar ice. At the London ICE the lowest price was EUR 25.87, a price level which we last saw one month before.

(Average Quotes Exchange / OTC)      
Instrument 09/08/2019 16/08/2019 Change
EUA (Spotmarket) 28.09 EUR 26.00 EUR -2.09 EUR
EUA (December-2019-Future) 28.12 EUR 25.96 EUR -2.16 EUR
CER (Spotmarket) 0.21 EUR 0.20 EUR -0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 58.30 USD 58.94 USD +0.64 USD
EURO (Currency, Forex) 1.1202 USD 1.1097 USD -0.0105 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