Emissions Trading / Carbon Market News (2019-05-03)

Dear Sir or Madam,

Also last week, discussions on further pricing of greenhouse gas emissions at national level in Germany continued, although it will probably take some time before a consensus will be reached that sufficiently addresses both the social and environmental aspects. Even within the governing parties, the leading party members disagree on how to do this. The fact that something has to happen in addition to the current emissions trading scheme is clear to most politicians in order to at least comply with the climate protection targets in 2030. Whether pricing with an additional tax in the transport and building sectors makes sense is doubted by various bodies. These see an expansion of the functioning emissions trading as an economically sensible solution. The only question is how quickly a European solution can be found here, because such a bill has to be brought in turn by all EU political bodies, which would take much longer than the adoption of a national law.

The prices of emission allowances in the context of the EU emissions trading have again slightly declined in the past week compared to the previous week, which was also to be expected after the strong increase in April.

Due to today’s British bank holiday no auctions take place today on the EEX. Nevertheless, on the remaining days of the week, a total of 12,627,500 EUA and 640,000 EUAA for aviation will be auctioned. In the coming week there will be a total of 10,694,000 EUA. In the last week of May, Christ’s Ascension and Spring Bank Holiday in the UK will offer reduced auction volume of just 2,495,000 CO2 allowances.

(Average Quotes Exchange / OTC)      
Instrument 2019-04-26 2019-05-03 Change
EUA (Spotmarket) 25.77 EUR 25.12 EUR -0.64 EUR
EUA (December-2019-Future) 25.85 EUR 25.20 EUR -0.65 EUR
CER (Spotmarket) 0.22 EUR 0.22 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 71.59 USD 71.06 USD -0.53 USD
EURO (Currency, Forex) 1.1145 USD 1.1201 USD +0.0056 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