Emissions Trading / Carbon Market News (25/01/2021)

Dear Sir or Madam,

Joe Biden took office in Washington last week and one of his first acts was to initiate the United States’ return to the Paris Agreement and to sign a letter to that effect to the United Nations. If the letter of accession is accepted, the US will officially rejoin the agreement 30 days later.

Nobody less than former US Secretary of State John Kerry has been appointed as special envoy for climate protection in the United States’ national security council. Furthermore, President Joe Biden has instructed his government employees to identify all decisions made by the Donald Trump administration to the detriment of environmental and climate protection and to initiate appropriate countermeasures.

Last week, the bulls again set the tone on the market for European CO2 emission rights and caused prices to rise by almost 8% compared to the bearish previous week. On Friday this Week the first auction of EUAs from the new trading period takes place. At the Leipzig EEX, 2,651,000 EUAs from the German contingent will be offered for auction; in the following 5th calendar week of the year there are then a total of 15,091,500 emission certificates.

When purchasing emission rights to meet the compliance obligation for 2020, please ensure that the EUAs for the new trading period cannot be used for 2020 and discuss your needs with your trader, who will transfer the required certificates to you. In the newly designed Union Registry you will then see which trading period the EUAs are to be assigned to.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)31.64 EUR34.15 EUR+2.51 EUR
EUA (December-2021-Future)31.74 EUR34.24 EUR+2.50 EUR
CER (Spot-Market)0.36 EUR0.36 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)54.86 USD55.18 USD+0.32 USD
EURO (Currency, Forex)1.2078 USD1.2173 USD+0.0095 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. CER CP1 and ERU are eligible in ETS until end of March 2015 and must be swapped into EUA. 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