Emissions Trading / Carbon Market News (2017-08-07)

Dear Ladies and Gentlemen,

Last week, a small, but nevertheless historical piece of news came from the carbon market. During the first year’s summer auction with a halved auction volume, a trader set an expensive record last Tuesday. With his bid of 5.60 EUR he had given the highest bid of the day. As far as nothing historical. However, he bid for the entire auction volume and this combination led to the fatal result that he was the only one to win the bid and thus had bought 2,131,500 EUAs at a price 34 cents higher than he could have done on the spot market.

The price for the December future then automatically rose, but only up to 5.38 EUR. The traders had understood the situation quickly, of course, and the technical rise in prices then also quickly reverted. Apart from this presumed unintentional spectacular deal, the carbon market in the past week was typical for the summer period with low sales and low volatility.

A small, but in this case absolutely not historical piece of news was reported from the so-called “Diesel summit”. But is there anything at all to report? Was the result not already fixed in advance? If we look at this result in relation to the efforts, we see below the line nothing than a very negative carbon footprint. Instead of burdening the environment for the trips to Berlin, the result could have been achieved much more simply and inexpensively. For example: The German Environmental Minister Barbara Hendricks writes a strongly-worded e-mail to the Minister of Transport Alexander Dobrindt. He reads the mail, but then writes its own version to the car-makers. Unfortunately, his e-mail accidentally lands in the spam folder. The car makers send instead the already prepared note to the media. The result would have been the same, but nobody would have to drive a single kilometer, nor had been wasted a single piece of paper.


(Average Quotes Exchange / OTC)      
Instrument 2017-08-04 2017-07-28 Change
EUA (Spotmarket) 5.34 EUR 5.17 EUR +0.17 EUR
EUA (December-2017-Future) 5.35 EUR 5.18 EUR +0.17 EUR
CER (Spotmarket) 0.21 EUR 0.20 EUR +0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 52.38 USD 52.19 USD +0.19 USD
EURO (Currency, Forex) 1.1774 USD 1.1752 USD +0.0022 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 have 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. These 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 or +44.20.79790283.



With kind regards,


Advantag Services GmbH