Emissions Trading / Carbon Market News (24/09/2021)

Dear Sir or Madam,

yesterday, Sunday, the outcome of the elections in Germany suggests that the formation of a government will be rather difficult. But especially the most unpleasant constellation from the point of view of the capital markets, a possible new red-green-red federal government did not get a majority, which the stock exchange prices this morning already rewarded with the DAX. The probability that there will be radical political changes is significantly lower with the possible government coalitions that are now to be formed.

Even if the German Greens did worse than expected, it is very likely that they will play a role in the new government, be it with the leading CDU / CSU union or the SPD.

In doing so, it is very likely that they will want to implement more climate protection and that already set incentives to buy on the market for European CO2 emission rights on Friday in the run-up to the elections. These were seen in particular by investment funds that have expanded their portfolio of emission rights. The oil prices also supported the rise and so the EUAs reached a new all-time high of EUR 64.16 on the futures market on Friday afternoon, after which the prices fell back somewhat towards the end of the day.

This morning the market is still clearly bullish, which has led to a new current all-time high of EUR 64.85. It is currently not foreseeable when there will be a correction which taxable companies could use to buy.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)59.45 EUR62.78 EUR+3.33 EUR
EUA (December-2021-Future)59.48 EUR62.94 EUR+3.46 EUR
CER (Voluntary Spot-Market ø)3.50 USD3.50 USD+0.00 USD
VER (Gold Standard Spotmarkt ø)14.49 USD14.49 USD+0.00 USD
ICE Brent Crude Oil (Benchmark Future)75.31 USD78.03 USD+2.72 USD
EURO (Currency, Forex)1.1737 USD1.1720 USD-0.0017 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