Emissions Trading / Carbon Market News (23/08/2021)

Dear Sir or Madam,

According to calculations by the Berlin think tank “Agora Energiewende”, this year Germany will experience the largest increase in greenhouse gas emissions in the last 30 years. The increase is expected to be 47 million tonnes compared to 2020, in total only 37% below the 1990 level.

According to the calculations by Agora Energiewende, the areas of buildings, transport and industry in particular will fail to meet the sector targets set out in the Climate Protection Act for 2021. “With the current increase, an immediate program with effective climate protection measures across all sectors is not only necessary, but also legally mandatory,” says Dr. Patrick Graichen, Director of Agora Energiewende. Failure to meet the sector targets obliges the implementation of an immediate program in accordance with the current climate protection law, which the new federal government must adopt within the first 100 days.

It can therefore be assumed that climate protection will be an important topic in the coming months even after the federal elections and will lead to the mandatory introduction of additional reduction measures, such as the introduction of a speed limit on German motorways, which at 130 km/h is around 2 million according to calculations by the German Federal Environment Agency would save.

Furthermore, additional measures in the promotion of climate-friendly buildings and the renovation of existing buildings could count.

In the past week, the prices for CO2 emission rights moved in a very volatile range of EUR 52.51 and EUR 58.28, influenced by the energy markets, which have moved significantly downwards due to renewed Corona worries, as shown in the example the price of Brent crude oil, which at the end of last week was $ 65, its lowest level since May.

This week the summer auction volume of 7,565,500 EUA will be offered again on the Leipzig EEX and in the coming week there will be two free days due to the Summer Bank Holiday on Monday and the meeting of the EEX Working Committee on Thursday, which is why only 5,631,000 EUA are offered. From calendar week 36, which begins on September 6, the regular 2021 auction volume of 11.4 million emission rights will start again.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)55.39 EUR54.32 EUR-1.07 EUR
EUA (December-2021-Future)55.38 EUR54.38 EUR-1.00 EUR
CER (Voluntary Spot-Market ø)2.66 USD3.26 USD+0.60 USD
VER (Gold Standard Spotmarkt ø)14.99 USD14.03 USD-0.96 USD
ICE Brent Crude Oil (Benchmark Future)70.14 USD65.03 USD-5.11 USD
EURO (Currency, Forex)1.1796 USD1.1698 USD-0.0098 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