News

Dear Sir or Madam,

In Germany, the subject of hydrogen seems to be gaining ever greater importance for the future of industry and mobility.

This may certainly be justified in some areas of application, insofar as it is produced with the help of renewable energies, which of course also applies to all other alternatives to fossil fuels.

In electromobility, on the other hand, the use of hydrogen must be viewed critically. Significant energy has to be used to produce hydrogen. On closer inspection, this is problematic both economically and ecologically.

Last week, Greenpeace showed that you can cover 30 kilometers with a hydrogen-powered fuel cell vehicle with an amount of energy of 25 KWh. With a purely electrically powered vehicle, on the other hand, it is 110 kilometers, almost four times the distance.

With the synthetically produced fuels, the energy balance looks even worse, with 25 KWh of energy they would only travel 20 kilometers.

And this is another problem, especially for oil companies like Shell, because last week the oil company had to swallow a bitter pill as the district court in The Hague ruled that it would reduce its CO2 emissions and those of its suppliers by 45% by 2030. has to reduce.

The age of fossil energy generation is coming to an end in great strides.

In the past week, prices began to form a new floor above the € 50 mark after the previous week’s price correction unsettled the bulls. It can be assumed that the market will move with a greater range of fluctuation in the trading week that has been shortened due to today’s “Spring Bank Holiday”.

(Average Quotes Exchange / OTC)
Instrument	21.05.21	28.05.21	Change
EUA (Spot-Market)	51.29 EUR	50.97 EUR	-0.32 EUR
EUA (December-2021-Future)	51.75 EUR	51.03 EUR	-0.72 EUR
CER (Voluntary Spot-Market ø)	2.95 USD	2.95 USD	+0.00 USD
VER (Gold Standard Spotmarkt ø)	14.52 USD	14.52 USD	+0.00 USD
ICE Brent Crude Oil (Benchmark Future)	66.68 USD	68.95 USD	+2.27 USD
EURO (Currency, Forex)	1.2178 USD	1.2193 USD	+0.0015 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

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)
Instrument	14.05.21	14.05.21	Change
EUA (Spot-Market)	56.65 EUR	51.29 EUR	-5.36 EUR
EUA (December-2021-Future)	56.65 EUR	51.75 EUR	-4.90 EUR
CER (Voluntary Spot-Market ø)	1.87 USD	2.95 USD	+1.08 USD
VER (Gold Standard Spotmarkt ø)	13.71 USD	14.52 USD	+0.81 USD
ICE Brent Crude Oil (Benchmark Future)	68.72 USD	66.68 USD	-2.04 USD
EURO (Currency, Forex)	1.2082 USD	1.2178 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

Dear Sir or Madam,

The Federal Constitutional Court had requested the amendment, and the Federal Cabinet delivered at a truly sporting speed and passed the amendment to the Climate Protection Act last Wednesday. The corrections are primarily intended to distribute the climate protection efforts until 2045 more fairly between current and future generations.

More committed climate protection targets are to be welcomed, and it is not only the younger generation that is aptly calling for consistent changes to achieve the containment of global warming agreed by the global community in Paris. Clearly defined targets on the part of government decision-makers are the first decisive step.

But of course, it is comparatively easy to set a goal of losing fifteen kilograms of overweight instead of ten.  Much more difficult, however, are the subsequent efforts to change one’s diet and get plenty of exercise. It is the same with climate protection goals – all parts of society must make an appropriate but resolute contribution to achieving the goals.

There is no doubt that the avoidance of fossil fuels is a core area of necessary action, and the price of greenhouse gas emissions plays a crucial role in this. Here, during the past trading week, the EUA’s continued their already spectacular rally even more spectacularly. Despite a short-term setback on Thursday, the price rose by more than EUR 6.00. In the past six months, EUA has thus gained around 150 per cent – a fact that can be explained above all by the strategy of investors, who seem to have no interest in short-term profit-taking.

(Average Quotes Exchange / OTC)
Instrument	07.05.21	14.05.21	Veränderung
EUA (Spot-Market)	50.45 EUR	56.45 EUR	+6.20 EUR
EUA (December-2021-Future)	50.45 EUR	56.65 EUR	+6.20 EUR
CER (Voluntary Spot-Market ø)	1.87 USD	1.87 USD	+0.00 USD
VER (Gold Standard Spotmarkt ø)	13.71 USD	13.71 USD	+0.00 USD
ICE Brent Crude Oil (Benchmark Future)	68.21 USD	68.72 USD	+0.51 USD
EURO (Currency, Forex)	1.2163 USD	1.2082 USD	-0.0081 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

Dear Sir or Madam,

Last week, too, climate protection had a high priority in Germany’s political landscape. After the groundbreaking ruling by the Federal Constitutional Court the week before, politicians in the election year 2021 have now recognized that the issue can no longer be overlooked. New legislative proposals were promptly made, with the 11th Petersberg Climate Dialogue, which this year took place virtually in an environmentally friendly manner, also provided a corresponding stage on which ministers from 40 countries met. Chancellor Angela Merkel, British Prime Minister Boris Johnson and UN Secretary General Antonio Guterres also attended the meeting.

It ended on Friday with the call to make this year’s world climate conference COP 26 in Glasgow a success and to finally resolve all open points of the regulations under the Paris Agreement.

Federal Chancellor Dr. Angela Merkel stated that Germany should tighten its climate target for 2030 to a CO2 reduction of 65 percent and achieve greenhouse gas neutrality in 2045, which emerges from the draft for a new climate protection law, the key points of which the German Federal Environment Minister Schulze had presented shortly before. Merkel particularly emphasized that she sees global pricing of greenhouse gas emissions as an important step in the fight against climate change. And the host Boris Johnson sees climate protection as a kick start for a new industrial revolution; Great Britain has also tightened its climate targets significantly.

Ultimately, that will mean that greenhouse gas emission prices could hit triple digits in the not too distant future. European Commission Vice President Frans Timmermans on Friday downplayed the prospect that regulators might intervene on the bullish price of European emission allowances, saying that EUAs should trade even higher amid the bloc’s stricter emissions target for 2030.

This got the bulls going again and set a new all-time high at EUR 51.10 per EUA on the last trading day of the week, ignoring the fact that the 2020 compliance period ended on the Friday of the previous week. And the new trading week also begins with a significant plus above the 51 Euro mark.

Since the political will as well as the speculators and the market dynamics are difficult to predict, a solid procurement strategy for the coming years definitely makes sense in order to mitigate the blatant price fluctuation risks.

We would be happy to advise you on this and coordinate an appropriate procurement strategy with you.

(Average Quotes Exchange / OTC)
Instrument	23/04/2021	23/04/2021	Change
EUA (Spot-Market)	48.75 EUR	50.45 EUR	+1.70 EUR
EUA (December-2021-Future)	48,84 EUR	50.45 EUR	+1.61 EUR
CER (Voluntary Spot-Market ø)	1.87 USD	1.87 USD	+0.00 EUR
VER (Gold Standard Spotmarkt ø)	13,71 USD	13.71 USD	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	66.62 USD	68.21 USD	+1.59 USD
EURO (Currency, Forex)	1.2018 USD	1.2163 USD	+0.0145 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