Dear Sir or Madam,

The preparatory conference for this year’s World Climate Conference in Glasgow took place in Milan from September 30th to October 2nd. Participating ministers from several countries spoke out in favor of concluding negotiations on international trade in emissions certificates in line with the Paris Agreement on Climate Change. The representatives formulated the clear expectation that all technical work must now move forward quickly in order to take all outstanding decisions on the conclusion of the Paris climate agreement in Glasgow. There was also the expectation that the process for the new climate finance target for the period after 2025 would be drawn up in Glasgow and that sufficient consideration would also be given to the damage caused by climate change.

In addition to the conference, almost 400 young people from 186 countries discussed their expectations of climate policy and the outcome of COP 26 at “Youth4 Climate 2021” and presented their demands to the ministers meeting in Italy.

Meanwhile, there are also talks in Brussels calling for institutional speculators to be curtailed on the price development of CO2 emission rights in order to reduce the effects of the high prices of the energy market in connection with emission rights on European households with low incomes. A debate is to take place on October 6th in the EU Parliament with representatives of the European Commission and representatives of the Council of Europe of the member states, at which this will be discussed. In the past week, more than 300 mutual funds reported holding positions in the European carbon market.

Last Tuesday, the prices for EUAs reached a new all-time high of 65.77 Euros, but had to fall significantly again by the end of the trading week due to profit-taking, which is why the market on a weekly closing price basis lost 1.4% compared to the previous week.

It should be interesting in the coming weeks how the debate about speculative funds will develop and whether and when there could be position limits or similar restrictions.

(Average Quotes Exchange / OTC)
Instrument	24/09/21	01/10/21	Change
EUA (Spot-Market)	62.78 EUR	61.99 EUR	-0.79 EUR
EUA (December-2021-Future)	62.94 EUR	62.04 EUR	-0.90 EUR
CER (Voluntary Spot-Market ø)	3.50 USD	3.50 USD	+0.00 USD
VER (Gold Standard Spotmarkt ø)	14.49 USD	14.49 USD	+0.00 USD
ICE Brent Crude Oil (Benchmark Future)	78.03 USD	79.14 USD	+1.11 USD
EURO (Currency, Forex)	1.1720 USD	1.1592 USD	-0.0128 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 (eco securities). 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,

yesterday, Sunday, the outcome of the elections in Germany suggests that the formation of a government will be rather difficult. But especially the most unpleasant constellation from the point of view of the capital markets, a possible new red-green-red federal government did not get a majority, which the stock exchange prices this morning already rewarded with the DAX. The probability that there will be radical political changes is significantly lower with the possible government coalitions that are now to be formed.

Even if the German Greens did worse than expected, it is very likely that they will play a role in the new government, be it with the leading CDU / CSU union or the SPD.

In doing so, it is very likely that they will want to implement more climate protection and that already set incentives to buy on the market for European CO2 emission rights on Friday in the run-up to the elections. These were seen in particular by investment funds that have expanded their portfolio of emission rights. The oil prices also supported the rise and so the EUAs reached a new all-time high of EUR 64.16 on the futures market on Friday afternoon, after which the prices fell back somewhat towards the end of the day.

This morning the market is still clearly bullish, which has led to a new current all-time high of EUR 64.85. It is currently not foreseeable when there will be a correction which taxable companies could use to buy.

(Average Quotes Exchange / OTC)
Instrument	17.09.21	12.09.21	Change
EUA (Spot-Market)	59.45 EUR	62.78 EUR	+3.33 EUR
EUA (December-2021-Future)	59.48 EUR	62.94 EUR	+3.46 EUR
CER (Voluntary Spot-Market ø)	3.50 USD	3.50 USD	+0.00 USD
VER (Gold Standard Spotmarkt ø)	14.49 USD	14.49 USD	+0.00 USD
ICE Brent Crude Oil (Benchmark Future)	75.31 USD	78.03 USD	+2.72 USD
EURO (Currency, Forex)	1.1737 USD	1.1720 USD	-0.0017 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 (eco securities). 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 21st United Nations Climate Change Conference in Paris on 12 December 2015, the 195 members signed the commitment, made famous and celebrated as the “Paris Agreement”, to keep the increase in the average temperature of the Earth well below 2 degrees Celsius above pre-industrial levels and to make efforts to limit the temperature increase to 1.5 degrees. To achieve these goals, the signatories committed to regularly formulate their own climate protection contributions at national level, so-called NDCs (Nationally Determined Contributions).

Before the 26th UN Climate Change Conference begins in Glasgow, Scotland, in a few weeks, the UN published a report last Friday that global greenhouse gas emissions in 2030 will be 16% higher than in 2010, even if all NDCs submitted under the Paris Agreement are fully achieved. According to climate models, current emission projections put the world on track for catastrophic warming of 2.7°C by the end of the century. Against this background, the NDCs to date are insufficient and urgently need to be improved. While this has already happened here and there, the efforts of the global community are still not sufficient to meet the Paris Agreement. It must be the urgent goal of the conference in Glasgow to take immediate corrective action.

In the past trading week, the carbon price has for the first time again detached itself from the development on the energy market. In particular, the link to the gas price seems to have been abandoned by traders, at least for the time being. Over the week, the December contract corrected below the 60-euro mark, where the price currently seems to be settling.

(Average Quotes Exchange / OTC)
Instrument	10.09.21	17.09.21	Change
EUA (Spot-Market)	60.89 EUR	59.45 EUR	-1.44 EUR
EUA (December-2021-Future)	60.92 EUR	59.48 EUR	-1.44 EUR
CER (Voluntary Spot-Market ø)	3.50 USD	3.50 USD	+0.00 USD
VER (Gold Standard Spotmarkt ø)	14.49 USD	14.49 USD	+0.00 USD
ICE Brent Crude Oil (Benchmark Future)	73.42 USD	75.31 USD	-1.89 USD
EURO (Currency, Forex)	1.1810 USD	1.1737 USD	-0.0073 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 (eco securities). 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,

Actually the term is utter nonsense: climate protection. Nobody has to protect the climate, because the climate doesn’t care what it is like. Rather, it is about protecting the conditions for human life. The planet will adapt to the climate, that much is certain. Animal species will disappear and new, more resilient forms of life will emerge. No one can specifically predict whether human race will be sufficiently resistant to the climate catastrophe they have accelerated. But one thing is certain, however – extreme weather events will continue to increase in the future. In order to reduce the speed of climate change to an adaptable level, a swift global approach is essential.

US President Joe Biden recognized this in contrast to his predecessor, who had significantly lower cognitive abilities, and last week declared the “red alert”: “The country and the world are in danger. This is not an exaggeration. That’s a fact. “, said US President Joe Biden in view of the recurring devastating forest fires in California and Hurricane Ida. Accordingly, an additional $ 24 billion should now be considered in the budget. In Germany, too, the consequences of extreme weather events are increasingly costing money: the uninsured damage from the heavy rain catastrophe alone is estimated at 30 billion euros. And that’s just the interim balance for 2021.

Last week, the prices for European CO2 emission rights rose again significantly and on Wednesday marked a new all-time high at EUR 63.35 per EUA; accompanied by bullish energy prices. However, EUA rates came under pressure on Friday after the completion of Nord Stream 2 was confirmed and is set to deliver gas from Russia before the end of the year. As a result, some market participants took profits and the trading week closed at EUR 60.92 in the ICE December futures contract.

(Average Quotes Exchange / OTC)
Instrument	03.09.21	10.09.21	Change
EUA (Spot-Market)	61.23 EUR	60.89 EUR	-0.34 EUR
EUA (December-2021-Future)	61.32 EUR	60.92 EUR	-0.40 EUR
CER (Voluntary Spot-Market ø)	3.26 USD	3.26 USD	+0.00 USD
VER (Gold Standard Spotmarkt ø)	14.03 USD	14.03 USD	+0.00 USD
ICE Brent Crude Oil (Benchmark Future)	72.56 USD	73.42 USD	+0.86 USD
EURO (Currency, Forex)	1.1877 USD	1.1810 USD	-0.0067 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 (eco securities). 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