Emissions Trading / Carbon Market News (2018-05-04)

Dear Sir or Madam,

Whether the big German Allianz Insurance has played a role in its decision not to insure neither the construction nor the operation of coal-fired power plants in the future, the suit of the Peruvian peasant Saúl Luciano Lliuya against RWE in terms of the personal consequences of climate change, we do not know. However, the economic risks in connection with the burning of fossil fuels, which can hardly be calculated in the future, should be taken into account by all actors at the latest since the diesel scandal and the first partial success of the complaint of the Peruvian farmer against RWE. The German Allianz insurance is not the first well – known and globally operating company, which withdraws from the financing of climate – damaging technologies and certainly is not one of the last.

In the past week, the deadline for submitting certificates ended in the compliance market of the European Emissions Trading System (EU ETS). Trading companies must be submit until 30.04. one year of emission and depreciation of the emitted amount of CO2 or its equivalent of other greenhouse gases. This should have succeeded in all companies, because otherwise threatens next to the price for the purchase of the certificates a fine of 100 € per not punctually issued certificate, which can be life-threatening for one or the other companies.

Thus, the European emission allowances also took the end of the deadline for a brief breather. After prices rose to € 13.79 per EEA on Tuesday, prices fell to € 12.75 in a weaker energy market environment on Thursday to close at € 13.00 at the close of the trading week, at a closing price of € 13.00 conclude.

The fact that market participants have seen no reason for a correction of the EUA prices in the past week, even after the end of the submission deadline, currently speaks against an end to the bull market. On the other hand, a weak auction demand or a negative market environment may be the trigger for price declines. It is therefore important to keep an eye on these two indicators next week.


(Average Quotes Exchange / OTC)
Instrument 2018-05-04 2018-04-27 Change
EUA (Spotmarket) 13.00 EUR 13.51 EUR -0.51 EUR
EUA (December-2018-Future) 13.02 EUR 13.56 EUR -0.54 EUR
CER (Spotmarket) 0.21 EUR 0.20 EUR +0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 74.92 USD 73.65 USD +1.27 USD
EURO (Currency, Forex) 1.1958 USD 1.2128 USD -0.0170 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 or +44.20.79790283.


With kind regards,

Advantag Services GmbH