Emissions Trading / Carbon Market News (22/11/2021)

Dear Sir or Madam,

In one of the countless TV discussions on the current handling of the Corona pandemic, a participant expressed herself with disarming logic. She began by emphasising how important and correct the demands were that all people must now join forces to oppose any further spread of the virus. But then she added that we must also oppose global warming with the same determination and with immediate, courageous measures. There should be no distinction in importance and urgency.

In this context, the magazine “WirtschaftsWoche” reported last weekend on an agreement between the coalition partners to also abandon gas as an energy source in Germany by 2045 at the latest. After the phase-out of nuclear energy and coal, the renunciation of gas firing, which is seen as a bridging technology, would mean a great challenge for the economy and property owners. However, the CO2 targets in Germany could not be achieved otherwise, coalition circles said. In the spirit of courageous and determined action, it would now be desirable for the industry to look for alternatives with all the means at its disposal instead of reflexively taking a defensive stance.

In the meantime, the carbon market has staged a fulminant rally, breaking through technical resistances that only a short time ago had the sound of dreams of the future. In today’s early trading, the price even exceeded the 70-euro mark, which is significant both from a chart-technical and a market-psychological point of view.

In national emissions trading, the Leipzig energy exchange EEX, in coordination with the German Energy Agency, has announced three additional sales dates for this year, namely for the 9th, 14th and 16th of December. These additional dates have become necessary because apparently far too few companies have taken care of the procurement of the national emission allowances so far for the purchases to be processed in time. This concession is intended to prevent companies from purchasing allowances in the coming year in order to fulfil their obligation to surrender in 2021, as these will then automatically cost 30 euros instead of the previous 25 euros. As a member of the EEX, we will be happy to assist you as an intermediary in the timely procurement.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)59.38 EUR69.36 EUR+6.09 EUR
EUA (December-2021-Future)59.39 EUR69.36 EUR+6.09 EUR
CER (Voluntary Spot-Market ø)4.78 USD4.78 USD+0.00 USD
VER (Gold Standard Spotmarkt ø)13.69 USD13.69 USD+0.00 USD
ICE Brent Crude Oil (Benchmark Future)82.26 USD78.43 USD-3.63 USD
EURO (Currency, Forex)1.1569 USD1.1282 USD-0.0197 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 (eco securities). 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