Emissions Trading / Carbon Market News (2019-04-01)

Dear Sir or Madam,

The International Energy Agency (IEA) has published that energy consumption increased by 2.3% in 2018, raising global CO2 emissions to a catastrophic record. The increase was twice as high as the average of the past decade and caused CO2 emissions of 33.1 billion tonnes in the energy sector, an increase of 1.7% over 2017. In particular, three countries are directly responsible for the sharp increase: China, India and the USA. However, China must be credited for having taken over the majority of the production processes for the rich industrialized countries. These emissions are also indirect emissions from Europe, North America and other affluent areas of our planet.

Since 27.03.2019, the German budget has been used up in terms of CO2 emissions, which is available to us this year in order to meet the goals of the Paris Agreement on Climate Change. By that time, Germany had emitted 198,000,000 tonnes of CO2 into the atmosphere. In order to reach the 2°C target, the former pioneer in climate protection must therefore significantly reduce emissions, otherwise the budget, which is the maximum available in 2050, is already used up in 2025. Accordingly, the emission of CO2 is expected to become more expensive.

European carbon emission allowances rose slightly last week, but uncertainty surrounding Brexit continues to be a major drag.

(Average Quotes Exchange / OTC)      
Instrument 2019-03-22 2019-03-29 Change
EUA (Spotmarket) 20.52 EUR 21.44 EUR +0.92 EUR
EUA (December-2019-Future) 20.67 EUR 21.54 EUR +0.87 EUR
CER (Spotmarket) 0.22 EUR 0.23 EUR +0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 66.40 USD 68.35 USD +1.95 USD
EURO (Currency, Forex) 1.1300 USD 1.1217 USD -0.0083 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