Emissions Trading / Carbon Market News (26/10/2020)

Dear Sir or Madam,

The continued reluctance to buy due to political and economic risks had brought the price for European CO2 emission rights EUA to a new four-month low last week, which was just above the 23 euro mark. On Friday, however, prices recovered at the start of trading and ensured that the last week of trading ended with a weekly gain of more than 2%.

But it was not only the favorable purchase prices that motivated the buyers here, but also the report that the EU environment ministers were partially able to agree on measures to achieve climate neutrality in 2050, even if the topic will probably only be deepened by the European heads of government in December will be. Should a reduction target of 55% or even 60% be discernible as a reduction target for 2030, this should have a clearly bullish effect on the prices for EUA.

This week, a total of 14.4 million EUAs will be auctioned at the Leipzig EEX, followed by 21.7 million certificates in the coming week, which next Wednesday will also include 891,500 EUAA for aviation.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)24.95 EUR25.49 EUR+0.54 EUR
EUA (December-2020-Future)24.84 EUR25.49 EUR+0.65 EUR
CER (Spot-Market)0.28 EUR0.31 EUR+0.03 EUR
ICE Brent Crude Oil (Benchmark Future)42.80 USD41.64 USD-1.16 USD
EURO (Currency, Forex)1.1717 USD1.1860 USD+0.0143 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