Emissions Trading / Carbon Market News (2017-11-13)

Dear Ladies and Gentlemen,

Last Sunday was halftime at the 23rd Conference Of Parties (COP23) and at the beginning of last week, the first reasonable results have been adopted. Among others initiated Germany the worldwide biggest forestation of to protect the climate. Until 2020 shall be 150 million hectare wood reforested, until 350 million hectare to change carbon dioxide into oxygen by photosynthesis of the trees.

Now, since Syria also signs the Paris climate agreement, solely the USA is isolated in that matter. But the former Gouverneur of California, Arnold Schwarzenegger, underlined in his role as representative of a network of important US-states and cities, that they will follow the way of fighting climate change ambitious. Schwarzenegger provides in his age of 70 still a huge energy to put his targets into practice. Together with former US-presidential candidate Al Gore, they showed, that is no way into future without renewable energy and emission free transport sector.

On Wednesday the final points of the reform of the European emissions trading system became defined. From 2021 on, the yearly reduction of emission allowances will be reduced by 2.2% after current 1,74%. This will reduce the yearly total volume by 48 million certificates. In 2021 the cap will reduce 1.8 billion allowances and at the end of trading period four, the cap sill be reduced by 1.3 billion certificates. That means, that EU-ETS compliance companies have the allowance to emit 1.3 billion tons of carbon emission or equivalents maximum. Also the carbon leakage rules became new defined to prevent the movement of companies out of the EU. Furthermore funds for innovation and modernisation was decided. They will get financed by a total of 710 million emission allowances. The earnings of these allowances will be paid to member states and companies for investments into climate protection measures.

The market reacts, as market does on these foreseeable results, after it became certainty. Speculative position was closed by profit taking. After the increase of the previous week of 10%, the EUA lost 6% on weekly basis.


(Average Quotes Exchange / OTC)
Instrument 2017-11-10 2017-11-03 Change
EUA (Spotmarket) 7.40 EUR 7.88 EUR -0.48 EUR
EUA (December-2017-Future) 7.40 EUR 7.88 EUR -0.48 EUR
CER (Spotmarket) 0.17 EUR 0.17 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 63.61 USD 62.18 USD +1.43 USD
EURO (Currency, Forex) 1.1664 USD 1.1608 USD +0.0056 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