Emissions Trading / Carbon Market News (2017-10-23)

Dear Ladies and Gentlemen,

Those who after the failed trialogue negotiations gathered that the price of carbon emission certificates would loose ground was more than wrong, as the last trading week showed. On the contrary, the market participants considered this circumstance rather as a little political flaw, which is hardly noticeable in the context of the general break-up mood. Since May of this year, the market is in a sustained upward trend, which has once again increased in momentum and volatility since the beginning of September, ie immediately after the summer break.

And this also applied to the trade in the last week. It started on Monday an impressive rally that began around the price of EUR 7.30 and marked a 21-month high on Thursday with a peak of EUR 8.05. On Friday, then profit takings pulled down the price to some EUR 7.50. However, taking into account that we were still under the six-euro mark at the beginning of September, even this correction was rather moderate.

Regardless of global political as well as national developments, traders seem to be focusing on the direct market environment in the ETS, which is marked by the official start date of the market stability reserve on 1 January 2019 and the ambitious regulations from the fourth trading period.

Almost a marginal note, but still worth mentioning is the decision of the new government of the Netherlands, which has just been constituted. They are therefore planning to shut all coal-fired power plants by 2030, and will launch their own price corridor for EUAs with a minimum price of EUR 18.00 from next year. While these measures will not have a direct impact on European emissions trading, they will undoubtedly have a signal effect.


(Average Quotes Exchange / OTC)
Instrument 2017-10-20 2017-10-13 Change
EUA (Spotmarket) 7.57 EUR 7.32 EUR +0.25 EUR
EUA (December-2017-Future) 7.57 EUR 7.32 EUR +0.25 EUR
CER (Spotmarket) 0.19 EUR 0.19 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 57.82 USD 57.12 USD +0.70 USD
EURO (Currency, Forex) 1.1785 USD 1.1822 USD -0.0037 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