Emissions Trading / Carbon Market News (19/10/2020)

Dear Sir or Madam,

Three topics are currently dominating not only the news but also the sentiment on the markets: the presidential election in the USA, the possibility of an unregulated Brexit and the second wave of corona infections.

While the outcome of the US election on 3 November is unlikely to have a particularly strong impact on European markets, the virus situation in Europe remains a significant burden and politicians are finding it difficult to take the right decisions. There is a real feeling that both the people and the policy makers are torn between concern for life and health on the one hand and the burden on the economy on the other. A golden road is nowhere in sight even at the beginning of the second wave of infection.

European emissions trading was also unable to avoid the pressure of the indices in the past trading week and closed weaker again. Even the 25 euro mark for December contracts did not withstand the pressure and was undercut by a few cents. The announcements from Brussels to significantly increase the emission reduction target by 2030 initially only had a short-term effect in this context, but it will still have a significant impact on price development. The same applies to the start of the fourth trading period and the effect of the market stability reserve, which should by no means be underestimated.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)25.81 EUR24.95 EUR-0.86 EUR
EUA (December-2020-Future)25.71 EUR24.84 EUR-0.87 EUR
CER (Spot-Market)0.29 EUR0.28 EUR-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)42.82 USD42.80 USD-0.02 USD
EURO (Currency, Forex)1.1823 USD1.1717 USD-0.0106 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