Emissions Trading / Carbon Market News (2018-10-01)

Dear Sir or Madam,

The Mercator Research Institute on Global Commands and Climate Change, or MCC for short, has programmed a clock on its homepage that shows the global carbon budget that mankind is still allowed to emit in order to reduce global warming to 1.5°C or 2°C to limit. This report contains the latest findings of the last progress report of the IPCC.

In order to meet the 1.5°C target set by the 2015 Paris Climate Change Conference, humankind should no longer emit CO2 or its equivalent of other greenhouse gases in the ordinary case by the end of the month. The goal of reducing global warming to 2°C gives us 17 years to emit a maximum of 690 gigatons of CO2 into the atmosphere.

As of today, the IPCC sits back to debate a meta-study of work by 24,000 experts in South Korea. A result is to be published on 8. October. It is not expected that the result will give cause for optimism.

In the past week, the European carbon emission rights in a trading range between 19.60 and 23.00 euros moved. After the certificates had dipped below the 20-euro mark on Wednesday, they closed at the end of the trading week with a small minus vis-à-vis the previous week visibly above the 21-euro line.

The upswing on the last two trading days was accompanied by a significant increase in crude oil prices, which rose by nearly 4% on a weekly basis. The main reason for this was the decision by the extended OPEC group last Sunday not to raise the production volumes for the time being.


(Average Quotes Exchange / OTC)      
Instrument 2018-09-14 2018-09-21 Change
EUA (Spotmarket) 19.94 EUR 22.08 EUR +2.14 EUR
EUA (December-2018-Future) 19.97 EUR 22.13 EUR +2.16 EUR
CER (Spotmarket) 0.29 EUR 0.29 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 78.08 USD 78.78 USD +0.70 USD
EURO (Currency, Forex) 1.1627 USD 1.1748 USD +0.0121 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,

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