Emissions Trading / Carbon Market News (20/07/2020)

Dear Madam or Sir,

While Poland wants to avoid responsibility for a Europe-wide goal of climate neutrality in 2050, the German Federal Ministry for the Environment decides to launch a comprehensive package of measures to support developing and emerging countries in dealing with the COVID 19 crisis in an ecologically-oriented manner. To this end, it is making 68 million euros available from funds from the international climate protection initiative. 29 projects in 25 countries are to be supported. In particular, emergency aid measures for nature reserves, stabilization of the economy with employment-promoting climate protection projects, advice for climate-friendly economic stimulus programs and pandemic prevention through the protection of biodiversity will be supported.

A report from the “Scientific Report” shows that climate protection must be rapidly advanced through global measures, which already predicts a CO2 content in the atmosphere for 2025, as it did in the so-called Pliocene 3.3 million years ago. At that time, the global sea level was around 20 meters higher – at 3 to 4 ° C higher global average temperature.

On Monday of the past trading week, the prices for European CO2 emission rights broke the EUR 30 mark and marked a high of EUR 30.80, which led to speculative market participants taking profits in the second half of the week.

This week, 13 million EUAs will be put up for auction at EEX, followed by 18.5 million EUAs in the coming week. After that, August starts with a halved auction volume, which means a volume of only 6.6 million EUA in the first week of August.

  (Average Quotes Exchange / OTC)   
EUA (Spotmarket)28.96 EUR27.73 EUR-1.23 EUR
EUA (December-2020-Future)29.02 EUR27.82 EUR-1.20 EUR
CER (Spotmarket)0.28 EUR0.30 EUR+0.02 EUR
ICE Brent Crude Oil (Benchmark Future)43.20 USD43.08 USD-0.12 USD
EURO (Currency, Forex)1.1305 USD1.1425 USD+0.0120 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