Emissions Trading / Carbon Market News (2019-07-30)

Dear Sir or Madam,

The last week will remain in the collective memory of citizens in Germany and other European countries. Supported by a so-called omega weather situation, extremely hot air came from Africa to the north and caused rows of all-time heat records. In Germany, the highest value so far has been 40.3 degrees from the year 2015. But last Thursday, this mark was surpassed at 15 different weather stations. The highest temperature ever measured in Germany is now officially 42.6 degrees. Even without a calculator, it is easy to see what an immense leap this is.

And the CO2 market has not held back in terms of records in the past trading week. At the beginning of the week, the price was strong and rose constantly, falling just short of the 30 euro mark on Wednesday at EUR 29.95. In the second half of the week, profit taking pushed the price down again, but the persistent bullish sentiment has not yet disappeared from the market.

In fact, the high prices for European pollution rights are already having an effect. The Polish government, which, under the responsibility of the Justice and Justice Party (PiS), has once again pushed the political course towards coal-fired power generation, was forced by the persistently high prices of EUA to pass a law to relieve energy-intensive companies. With only one dissenting vote and six abstentions, it was decided to financially relieve foundries, paper mills, the chemical industry and other companies with the equivalent of around a quarter of a billion euros to be paid by the Polish taxpayer. In contrast, according to a Carbon Pulse report, coal output in Europe fell by 19% in the first half of the year as higher carbon prices and cheaper renewable energies displaced high-emission coal production in almost all countries.

(Average Quotes Exchange / OTC)      
Instrument 19/07/2019 26/07/2019 Change
EUA (Spotmarket) 28.85 EUR 28.25 EUR -0.60 EUR
EUA (December-2019-Future) 28.89 EUR 28.29 EUR -0.60 EUR
CER (Spotmarket) 0.21 EUR 0.21 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 62.52 USD 63.23 USD +0.71 USD
EURO (Currency, Forex) 1.1220 USD 1.1131 USD -0.0089 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.

With kind regards,

Advantag Services GmbH