Emissions Trading / Carbon Market News (2018-07-02)

Dear Sir or Madam,

the relationship between the two German sister parties CDU and CSU is more than tense and it is currently extremely unclear how it will continue in the future. After lengthy meetings in Munich and Berlin, the current Federal Interior Minister has thrown his resignation from the post of Federal Minister and the CSU leadership in the balance, this decision, however, postponed again. What may seem like a victory for the Chancellor is, in fact, a defeat for the ruling coalition, and its position is as high as it has ever been in its 13-year chancellorship.

Rarely does the economy, including the Bavarian economy, position itself behind the position of Angela Merkel, as continuity and cohesion in Europe is an important basis for economic success. Whatever the coming days bring, a stormy autumn on the political level seems to be guaranteed.

In the past week, EU member states have come to a compromise with the EU Parliament on renewable energy and energy efficiency in climate protection. The recast of the Energy Efficiency Directive sets an energy saving target of at least 32.5 per cent by 2030, which is significantly higher than the 27 per cent proposed so far. Among other things, the share of renewable energies in the transport sector is set to increase to 14 percent by 2030, and thus be doubled.

Four variants of biomass or renewable electricity may be used: biofuels from crops such as corn or oilseed rape, biofuels from waste and residues such as straw or edible oils, electricity from renewable energies and synthetic fuels from renewable energy. The share of conventional biofuels from arable crops in total energy consumption in the transport sector should remain at a maximum of 7 percent, as in the past. Member States may now also be allowed to impose less than seven percent of the share of conventional biofuels without compensating elsewhere. The German government wants to count the proportion of conventional biofuels only up to a maximum share of 5.3 percent.

Last week, European CO2 emission allowances ranged from € 14.75 to € 15.38 and ended the first half of 2018 just below the € 15 mark last Friday. Market participants are likely to pay close attention to auction demand and energy market prices this week, but also have an eye on political developments in Germany.


(Average Quotes Exchange / OTC)      
Instrument 2018-06-22 2018-06-29 Change
EUA (Spotmarket) 15.09 EUR 14.98 EUR -0.11 EUR
EUA (December-2018-Future) 15.12 EUR 14.99 EUR -0.13 EUR
CER (Spotmarket) 0.23 EUR 0.23 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 75.71 USD 79.07 USD +3.36 USD
EURO (Currency, Forex) 1.1653 USD 1.1683 USD +0.0030 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