At the end of the
year we would like to thank you for the good and successful cooperation in
2019!
We wish you and
your friends and family members a peaceful Season holiday and a good start to a
healthy and successful New Year 2020!
Instead of sending Christmas cards or gifts by mail, this year we have voluntarily compensated for twenty-five tons of CO2 from the international climate protection project (CDM PK5461 in Pakistan), which avoids the emission of 458,114 tons of CO2 equivalents annually by reducing the emission of nitrous oxide (N2O), what in the atmosphere is 298 times more harmful to the climate than the greenhouse gas CO2.
The Chilean
leadership of the world climate conference, which ended yesterday with the
biggest delay in its history, was clearly disappointed by the outcome of the
summit. The participants probably could have started their departure already on
Friday, because the efforts of Chilean Environment Minister Carolina Schmidt to
get a presentable result in the extension failed because of bitter resistance
of a few states – above all Brazil. But even the USA, Saudi Arabia and Australia
did not want to commit themselves to binding regulations for international
cooperation and thus in connection with global trade in climate protection
certificates.
A year ago,
the summit in Poland had already failed on the same question, and now it is to be
finally addressed in Glasgow in 2020. However, one does not have to be a
downright pessimist to express doubts here. The states do not shake off the
decisions of Paris in principle, except for the USA, which had declared its
withdrawal from the agreement and thus officially will step off on 4 November
2020. But these national interests remain, which are closely linked with the
interests of the lobby around fossil energy sources and could not be overcome
so far. Thus the question of how the international community of the UN wants to
solve this knot justifiably arises.
A few days
ago, the European Union also found itself facing a similar question, with its
new Commission President von der Leyen pushing ahead with the proposal of a
so-called “Green Deal”. Here it was Poland that refused to sign. But
here, too, the focus should be on the other states, which have apparently
understood that the pace of global processes in favour of the global climate
lags far behind the worsening climate crisis. There is also a growing awareness
and indignation that a few states are in a position to block important
processes.
Last week, the
CO2 market was once again influenced by speculative traders. During the first
days of trading, the price stagnated at 25 euros. It was not until Thursday
that the market began to gain momentum again. On Friday the price was even
pushed to just below the 26 Euro mark. But the bulls apparently ran out of
steam at this point. When the mark was not overcome, the bears again took over
the direction. The price melted away and only found support in early trading
just above EUR 23.50 today.
(Average Quotes Exchange /
OTC)
Instrument
06/12/2019
13/12/2019
Change
EUA
(Spotmarket)
24.88
EUR
24.01 EUR
-0.87 EUR
EUA (December-2019-Future)
24.94
EUR
24.02 EUR
-0.92 EUR
CER
(Spotmarket)
0.18
EUR
0.20 EUR
+0.02 EUR
ICE Brent Crude Oil (Benchmark Future)
64.34
USD
64.93 USD
+0.59 USD
EURO (Currency,
Forex)
1.1055 USD
1.1120
USD
+0.0065 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.
Germany was
one of the countries most severely affected by climate change in the past year.
Consequently, the Federal Environment Agency recently issued a very detailed
statement on the climate change in transport and emphasized the term
“reduction gap”. The report shows that even if the measures and
instruments adopted so far are implemented, the reduction target for greenhouse
gas emissions by 2030 will be missed by far. In order to close this reduction
gap, the Federal Environment Agency recommends numerous measures. These
include, among other things, a quota of 70% for new registrations of electric
vehicles and a higher taxation of vehicles with high CO2 emissions as well as
for diesel engines. In addition, several other correctives are proposed, such
as the traveling allowance and the truck toll. Whether these will ever even be
considered in the next years remains to be doubted, so that we should get used
to the concept of the reduction gap already now. Perhaps it will soon be the
sad “word of the year”.
In the first
week of December, European emissions trading was under pressure from a high
auction volume of fresh allowances and a simultaneous sharp dip in oil prices.
In the week now beginning, the number of EUAs to be auctioned is again more
moderate and the oil price has also shot up significantly since Friday, because
the group of OPEC states and other players agreed after long negotiations on a
sharper production cut than expected. In the coming months, the 24 countries
want to pump 500,000 barrels of oil out of the ground less per day than at
present. The so-called OPEC+, with its heavyweights Saudi Arabia and Russia,
has already been trying more or less successfully for three years to influence
the oil price with such production limits.
(Average Quotes Exchange /
OTC)
Instrument
29/11/2019
06/12/2019
Change
EUA
(Spotmarket)
25.12 EUR
24.88
EUR
-0.24 EUR
EUA (December-2019-Future)
25.22
EUR
24.94
EUR
-0.28 EUR
CER
(Spotmarket)
0.18
EUR
0.18
EUR
+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)
60.76 USD
64.34
USD
+3.58 USD
EURO (Currency,
Forex)
1.1017 USD
1.1055 USD
+0.0038 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.
Last week – to coincide with the COP25 World Climate Change Conference
in Madrid, which begins this week – the German government has published its
monitoring report on climate change in Germany. According to the Federal
Environment Ministry, the consequences of global warming in Germany are more
noticeable and can be better documented. According to the report, the average
air temperature in Germany has already increased by 1.5 degrees from 1881 to
2018. In the last five years alone, this has increased by 0.3 degrees. Among
other things, this leads to more health risks due to heat stress, an increase
in the mean surface temperature of the North Sea and greater fluctuations in
agricultural yields. Now, the Federal Environment Ministry wants to promote the
promotion of artificial intelligence in the fight against climate change with
45 million euros, since human intelligence is obviously not enough.
In the next two weeks, the rules of the Paris Agreement on Climate
Change will be worked on in Madrid, which is not yet completely finished and
will come into force next year. The IPCC has already stated that efforts will
not be enough to limit climate change to below 2 ° C. Accordingly, 66 states
have already announced that they want to improve their climate targets.
Another issue is uniform rules for an international carbon market.
Countries that do not achieve sufficient greenhouse gas reductions should
finance climate protection projects in other countries and thereby acquire
pollution rights. Accurate monitoring is, however, absolutely necessary here,
as there were already irregularities in the previous CDM and JI mechanisms.
Perhaps the biggest controversial issue could be the review of the
Warsaw Mechanism, which was agreed in 2013 to ensure that poor countries that
are particularly affected by global warming receive appropriate assistance,
either from drought disasters, storms or sea-level rise especially in the
regions of Asia and Africa. Here are the rich industrialized nations required,
which contribute the most to global warming.
Prices for European CO2 emissions rose again slightly in the past
trading week, despite significant losses in crude oil. This week, 15.8 million
certificates will be auctioned in Leipzig. From December 17, the Christmas
break for auctions at the EEX begins on Monday, the 16.12.2019 come this year
for the last time 3,013,000 EUA under the hammer.
(Average Quotes Exchange / OTC)
Instrument
22/11/2019
29/11/2019
Change
EUA (Spotmarket)
24.57 EUR
25.12 EUR
+0.55 EUR
EUA (December-2019-Future)
24.58 EUR
25.22 EUR
+0.64 EUR
CER (Spotmarket)
0.18 EUR
0.18 EUR
+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)
63.64 USD
60.76 USD
-2.88 USD
EURO (Currency, Forex)
1.1020 USD
1.1017 USD
-0.0003 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.
Starting with
the cut-off date of January 1, 2018, only about 800 billion tons of CO2 are
expected to be emitted globally, in order to limit global warming to well below
2 degrees by 2100, according to the IPCC. In view of the current global
emissions of about 40 billion tons per year, the world will therefore still
have about twenty years left before humankind needs to be climate-neutral.
In a study for
the Campact organization, the New Climate Institute came to the conclusion that
Germany needed to be climate-neutral by 2030 so as not to miss the 1.5-degree
target and to remain within the national budget.
Simply put,
everyone would still have a good 100 tonnes of CO2 that they can emit in the
years to come. A global CO2 emissions trading scheme in which all people can
participate would, above all, achieve one thing – justice. After all, the
people who are most affected by climate change are those who have the least
responsibility for it.
Prices for
European CO2 emissions recovered slightly last week in a positive market
environment. This week, due to the Polish and German auction, 15.8 million new
certificates will be auctioned at the Leipzig EEX. The demand for the auctions
could be a good indicator of how prices will develop over the coming days.
(Average Quotes Exchange /
OTC)
Instrument
15/11/2019
22/11/2019
Change
EUA
(Spotmarket)
23.85
EUR
24.57 EUR
+0.72 EUR
EUA (December-2019-Future)
23.85
EUR
24.58 EUR
+0.73 EUR
CER
(Spotmarket)
0.16
EUR
0.18 EUR
+0.02 EUR
ICE Brent Crude Oil (Benchmark Future)
63.35 USD
63.64 USD
+0.29 USD
EURO (Currency,
Forex)
1.11051 USD
1.1020
USD
-0.0031 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.
