Dear Ladies and Gentlemen,
Today begins the World Climate Conference COP23 in Bonn, where it will take place for the island nation Fiji. There will be expected 25,000 participants from 200 countries. One of the targets of the conference is to find ways to comply with the Paris Climate Agreement from 2015.
That it will be a hard way is not only caused by ignoramuses like US-President Donald Trump. Also Germany, which proclaimed to play a leading role for climate protection in the past, will fail to reach the goal to reduce greenhouse gas emissions by 40% against 1997. Only 32% seems to be realistic on current calculations.
And this has multiple reasons. On the one hand, the continuing economic upswing of the last years and the exit from atomic energy on the other hand are main reasons, because it will lead to a higher usage of fossil energy as brown coal. And the low prices for European carbon emission allowances make the usage of coal more economically than energy production by natural gas, what would reduce the greenhouse gas emission by one third. Not to speak about the sense of driving kids with a two tons heavy SUV with 400 HP in the kindergarten, three kilometres away.
As long as the expansion of renewable energy is not enough to supply whole Germany with clean power with continuing stability of the national electricity grid, Germany would have to import atomic energy and coal based energy from their neighbours. This would be also no sustainable way in respect of environmental protection.
Now it remains to be seen, how the other countries will show their positions, after Germanys expected miserable fail to keep the own reduction targets alive and the exit of the USA from Paris climate agreement. Countries like Poland, which produce the most of their energy by coal, hang-up the European negotiations for a better climate policy deeply and perhaps they would exit the Paris agreement too, if it would not be harmfully for the lucrative continuance in the European Union.
Wednesday this week, the negotiation regarding the future of the European Emissions Trading System will continue. In the run-up, last week prices for European Emission Allowances EUA rose strongly by 10%, supported by stronger energy.
|(Average Quotes Exchange / OTC)|
|EUA (Spotmarket)||7.88 EUR||7.17 EUR||+0.71 EUR|
|EUA (December-2017-Future)||7.88 EUR||7.17 EUR||+0.71 EUR|
|CER (Spotmarket)||0.17 EUR||0.18 EUR||-0.01 EUR|
|ICE Brent Crude Oil (Benchmark Future)||62.18 USD||60.33 USD||+1.85 USD|
|EURO (Currency, Forex)||1.1608 USD||1.1609 USD||-0.0001 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.)
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