Emissions Trading / Carbon Market News (21/06/2021)

Dear Sir or Madam,

It is always good news when the mechanisms used for climate protection are effective.

At the end of last week, the German Federal Environment Agency published facts and figures that prove that the plants included in emissions trading have reduced their greenhouse gas emissions by 33% since 2013.

Last year, the 1,817 stationary systems in Germany recorded in the European Emissions Trading System (EU-ETS) emitted around 320 million tons of carbon dioxide equivalents, which corresponds to a decrease of 12 percent compared to 2019, and even 33% compared to 2013. The energy industry, which is increasingly relying on renewable energies and is also more likely to convert gas than coal into electricity, has contributed to this, as the CO2 emissions per kilowatt hour are significantly lower here. In 2020, emissions from German energy systems fell by around 15 compared to the previous year.

Emissions also fell in industry in 2020, although the effects of the corona pandemic must be taken into account. Here emissions fell by 5% to 114 million tons of CO2e compared to the previous year. Accordingly, further activities are necessary to manifest this sustainably in the post-pandemic era.

In air traffic there was a significant decrease of 58% compared to 2019; here approx. 4 million tons of CO2 could be saved. It is to be hoped that the industry will be more climate-friendly in the future and that more climate-friendly fuels, which are also environmentally friendly, will be developed and used in the future. At least the successful use of video conferences and virtual general meetings should make a recognizable part of the flights of the past obsolete.

Emissions from aviation: The emissions of the aircraft operators managed by Germany amounted to around 4 million tons of carbon dioxide in 2020. This corresponds to a decrease of 58 percent compared to the previous year. This is due to the sharp decline in flights as a result of the Covid-19 pandemic.

Throughout the EU, the emissions of all plants participating in the EU ETS fell by 11% in 2020 compared to the previous year, and in energy generation by as much as 15%. Compared to 2005, the decrease in emissions from the corresponding plants was as much as 43%, which means that emissions trading achieves the intended steering effect with market-based means.

Last week, trading in European emission rights showed itself in a slightly downward wavy line and closed comfortably above the 50 Euro line at 51.80.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)52.74 EUR51.80 EUR-0.94 EUR
EUA (December-2021-Future)52.67 EUR51.90 EUR-0.77 EUR
CER (Voluntary Spot-Market ø)3.02 USD3.02 USD+0.00 USD
VER (Gold Standard Spotmarkt ø)15.86 USD15.86 USD+0.00 USD
ICE Brent Crude Oil (Benchmark Future)72.58 USD73.23 USD+0.65 USD
EURO (Currency, Forex)1.2107 USD1.1862 USD-0.0245 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. CERs and VERs are average prices in the voluntary carbon offsetting market. 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