Emissions Trading / Carbon Market News (2018-12-10)

Dear Sir or Madam,

While in Germany above all politics and the car industry are struggling for a solution to curb fine particles pollution in cities, this problem is largely ignored by our neighbors in Poland. According to a study published by the World Health Organization (WHO) at the end of 2017, of the 50 EU cities with the highest levels of air pollution, 33 are in Poland. This is mainly due to private heating stoves and the country’s coal-fired power plants. In many cities, a majority of residents still heat coal, some of which are inferior. Even household waste ends up in the kilns, such as plastic bottles and electric cables. The Silesian city of Katowice is now in the fight against smog on drones, which thanks to a special device can “smell” above the chimneys, what is being burned. The local police can immediately catch and punish those who use toxic substances. However, the fine of 100 euros hardly scares anyone. It still remains much cheaper to pay the fines than to buy quality coal for the whole winter.

Currently, the participants of the 24th World Climate Conference can directly get an idea of ??the situation themselves. There, according to media reports, good progress towards uniform standards has been made at the expert level, so that in the coming days the responsible ministers can deal with the further decisions. As was the case last year, former Governor Arnold Schwarzenegger also appeared in Katowice and caused a stir with his comment that America’s president was “meschugge”.

At about the same time a year ago, the reform of European emissions trading with important key data from 2021 was decided. At that time, the course for CO2 emission certificates stood at around 7 euros. The market effectiveness of the decisions has thus been more than proven. But the host of this year’s climate conference seems to want to do everything to prevent a further increase in the price of carbon above the 20-euro mark. In September, for example, at the political level, efforts were made to tackle a further rise in prices. Last week, Poland sparked the next step by announcing that it would like to launch more than 50 million previously held certificates in the coming year. The reaction was simply terrible. Had the price settled stable at just over 20 euros at the beginning of the week, it plummeted on Thursday within a very short time by more than 2 euros and was stopped only at the 18-euro mark. Obviously, a number of companies benefited from this, which were covered with certificates as if by the push of a button. However, this had the consequence that the price on Friday regained its old state back, almost as if nothing had happened.


(Average Quotes Exchange / OTC)      
Instrument 2018-11-30 2018-12-07 Change
EUA (Spotmarket) 20.50 EUR 20.30 EUR -0.20 EUR
EUA (December-2018-Future) 20.50 EUR 20.30 EUR -0.20 EUR
CER (Spotmarket) 0.27 EUR 0.25 EUR -0.02 EUR
ICE Brent Crude Oil (Benchmark Future) 59.17 USD 60.89 USD +1.72 USD
EURO (Currency, Forex) 1.1316 USD 1.1396 USD +0.0080 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