Emissions Trading / Carbon Market News (2018-06-18)

Dear Sir or Madam,

The likelihood of a significant negative impact on the global economy continues to increase after US President Donald Trump has imposed his punitive tariffs. Now China has also responded with punitive tariffs on US products worth US $ 50 billion and the US is now threatening further punitive tariffs on Europe and China. Another escalation is more likely to be an agreement with Donald Trump in mind.

The stock markets have remained relatively unimpressed so far, and the US dollar also rose significantly against the euro at the end of last week. This and speculation about increasing oil production in the Middle East and Russia, as well as the OPEC meeting in Vienna next week, added to the oil price.

Ultimately, this unsatisfactory market environment meant that the price of European emissions allowances also moved significantly lower, losing 1.24 euros per tonne. Whether this is the beginning of a major correction before the summer break, remains to be seen and would not be unusual after the strong price gains of the past half year.

This week, 20,658,000 new certificates will be launched through auctions in the EU, Poland and Germany on the Leipzig EEX. It will therefore be interesting to see how auction demand is developing this week.

Today and tomorrow German Environment Minister Svenja Schulze has invited 35 ministers from all over the world to the Petersberg Climate Dialogue in preparation for this year’s World Climate Summit in Katowice, Poland. Important points here are the preparation of possible decisions regarding the implementation of the Paris Agreement on Climate Change and the restructuring of the global economy, which has hitherto been largely based on fossil fuels, towards sustainability.

Whether Germany can still maintain its credibility in terms of global climate protection is doubtful, given the expected significant failure of the CO2 reduction target of 40% by 2020.


(Average Quotes Exchange / OTC)      
Instrument 2018-06-08 2018-06-15 Change
EUA (Spotmarket) 15.76 EUR 14.52 EUR -1.24 EUR
EUA (December-2018-Future) 15.82 EUR 14.53 EUR -1.29 EUR
CER (Spotmarket) 0.23 EUR 0.23 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 76.42 USD 73.33 USD -3.09 USD
EURO (Currency, Forex) 1.1767 USD 1.1605 USD -0.0162 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.)

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With kind regards,

Advantag Services GmbH