Emissions Trading / Carbon Market News (24/05/2021)

Dear Sir or Madam,

At the beginning of last week the International Energy Agency (IEA) called for the immediate termination of the development of new oil, gas and coal reserves in order to prevent a further dangerous rise in global warming. To this end, it presented a roadmap that aims to achieve global climate neutrality by the middle of the century.

This is a strong turnaround, as the IEA has so far campaigned to secure the global supply of oil and other fossil fuels, thus demonstrating the urgency of immediate action all the more clearly.

Furthermore, the IEA is calling for vehicles with internal combustion engines to no longer be permitted from 2035, for the rapid global expansion of renewable energies to be promoted and, at the same time, for fossil fuels to be increasingly left in the ground.

Meanwhile, the Greens in the EU Parliament are also leading the way and are demanding a lower price limit of 50 euros for the negotiations beginning in July on further reforms of the EU emissions trading EU ETS, around the price to 150 euros by the end of this decade and to 195 euros in the mid-30s To raise euros. This means that coal can be phased out as early as 2030, like the green German MEP Michael Bloss told.

There are also considerations to increase the annual reduction factor from the current 2.2% to 5.8% and to set maximum position limits with a view to speculators. An expansion to the transport and real estate sector, on the other hand, is viewed critically in order not to burden citizens too much. Here, however, the German national emissions trading should serve as a model and possibly be introduced across the EU.

Last Tuesday the time had come – the market for EUAs made the correction we had long expected and fell by almost eight euros or a good 14% by Wednesday, which happened at the same time as the start of the British emissions trading system. On Thursday, however, the prices closed again at a stable level well above the 50 euro mark and on Friday the trading week ended with a price of 51.29 euros on the spot market.

Due to Whit Monday and the bank holiday on May 31, only 11.8 million EUA each will be auctioned on the Leipzig EEX in the next two weeks. That is 3.3 million shares per week less than is currently offered in a normal trading week and could provide further bullish impulses.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)56.65 EUR51.29 EUR-5.36 EUR
EUA (December-2021-Future)56.65 EUR51.75 EUR-4.90 EUR
CER (Voluntary Spot-Market ø)1.87 USD2.95 USD+1.08 USD
VER (Gold Standard Spotmarkt ø)13.71 USD14.52 USD+0.81 USD
ICE Brent Crude Oil (Benchmark Future)68.72 USD66.68 USD-2.04 USD
EURO (Currency, Forex)1.2082 USD1.2178 USD+0.0096 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