Emissions Trading / Carbon Market News (28/12/2020)

Dear Sir or Madam,

No no-deal Brexit after all! Literally at the last moment on Christmas Eve, Brussels and London have reached an agreement on the relationship between the UK and the EU. This answers the many hitherto unanswered questions on trade and other important issues in dealing with each other. Only the coming months will show how the more than 1000 pages of rules will work out in practice. But the news itself was understandably greeted with great relief, because any agreement would have been better than none.

Another major topic last week was the start of vaccination in Europe, after the first product against the Corona virus was also approved by the EU. The vaccine should and will now gradually be made available to the different population groups.

Against the background of this positive news, the price of emission certificates rose sharply again at the end of the last trading week and left the 30-euro mark clearly behind. In today’s early trading, the mark of 33 euros was even overcome, although here we are still talking about EUAs of the third trading period. It is not until 29 January that the EU begins auctioning allowances from the new trading period, allowances that can then be used for the first time at the beginning of 2022 for the compliance obligation. EUAs from the third trading period will remain valid indefinitely. However, it is to be expected that with the start of the new auctions until 30.04.21, i.e. the end of the 2020 compliance period, two different prices will come into effect, as it is known that only allowances from the third trading period can be used for this compliance period.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)30.92 EUR32.02 EUR+1.10 EUR
EUA (December-2021-Future)31.10 EUR32.19 EUR+1.09 EUR
CER (Spot-Market)0.36 EUR0.40 EUR+0.04 EUR
ICE Brent Crude Oil (Benchmark Future)52.26 USD51.19 USD-1.07 USD
EURO (Currency, Forex)1.2255 USD1.2153 USD-0.0102 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