Dear Sir or Madam,

Due to Brexit, Great Britain has also left the European emissions trading system EU ETS and has developed its own emissions trading system based on the model of the EU ETS.

In order to achieve a more efficient reduction in pan-European greenhouse gas emissions, more than 40 industrial associations from Great Britain and the EU have now asked British Prime Minister Boris Johnson and the President of the European Commission, Ursula von der Leyen, to link the EU emissions trading system with the British emissions trading system.

In addition, in addition to fair competitive conditions, better market liquidity in both trading systems is to be ensured.

The European emissions trading system has been linked to the Swiss emissions trading system since last year.

In the last week of trading, the prices for EU emission allowances set a new all-time high of 44.90 in the benchmark futures contract December 2021, and in the spot market the prices for buyers were in some cases already above the 45 Euro mark.

This week, on all five working days, a total of 15.091.500 EUAs from the contingents of the EU, Poland and Germany will be auctioned at the Leipzig EEX.

(Average Quotes Exchange / OTC)
Instrument	09/04/2021	16/04/2021	Change
EUA (Spot-Market)	43.56 EUR	44.42 EUR	+0.86 EUR
EUA (December-2021-Future)	43,64 EUR	44.33 EUR	+0.69 EUR
CER (Spot-Market)	0.60 EUR	0.62 EUR	+0.02 EUR
ICE Brent Crude Oil (Benchmark Future)	63.02 USD	66.69 USD	+3.67 USD
EURO (Currency, Forex)	1.1900 USD	1.1980 USD	+0.0080 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

Dear Sir or Madam,

Germany’s much-discussed decisions to phase out coal-fired power generation are seen by many as having no alternative, others rate them as half-hearted and not a few complain about the immense costs involved. However, these decisions were made when CO2 emission certificates cost only a fraction of today’s market price. It was foreseeable that with a successfully functioning emissions trading system, coal would sooner or later become unprofitable as an energy source. The extreme price increases of the recent past made this scenario a reality sooner than many could have imagined. Whatever details may be criticized in connection with the coal phase-out, it was and remains inevitable. This is now being felt particularly hard by those governments that stubbornly wanted to maintain their coal production. This is now being felt particularly painfully by those governments that obstinately wanted to maintain their coal production.

Meanwhile, the carbon market continues to be driven more by the actions of a new class of investors than by fundamental data. They are obviously still betting on rising prices and undoubtedly already have the 50-euro mark in mind. It will therefore be interesting to observe whether there will be a drop in prices after the annual compliance closes at the end of April.

At the beginning of the new, short trading week, the market initially reacted clearly bullish and already rose again above 43 euros.

(Average Quotes Exchange / OTC)
Instrument	26/03/2021	01/04/2021	Change
EUA (Spot-Market)	41.63 EUR	42.43 EUR	+0.80 EUR
EUA (December-2021-Future)	41,73 EUR	42.47 EUR	+0.74 EUR
CER (Spot-Market)	0.50 EUR	0.63 EUR	+0.13 EUR
ICE Brent Crude Oil (Benchmark Future)	64.47 USD	64.64 USD	+0.17 USD
EURO (Currency, Forex)	1.1794 USD	1.1815 USD	+0.0021 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

Dear Sir or Madam,

The German Fuel Emissions Trading Act (BEHG) creates the basis for the issuance and trading of certificates in the national emissions trading system (nETS) for emissions from fuels and ensures that these emissions are priced unless they are covered by EU emissions trading.

This particularly affects the building and transport sectors. The aim is to achieve the national climate protection goals and climate neutrality by 2050. The purpose of the German national emissions trading system is to price fossil greenhouse gas emissions. The law was passed in 2019 as part of the German government’s climate package and came into force in 2021.

In the introductory phase (2021 to 2025), the certificates will be sold at a fixed price. At the start of CO2 pricing in early 2021, a price of 25 euros / tCO2 is planned; this will rise to 55 euros / tCO2 by 2025.

From 2026, emission rights will then be auctioned, whereby a price corridor with a minimum price of 55 euros and a maximum price of 65 euros per emissions certificate has been set. It is not yet known whether a price corridor will also be specified in the following years. The obligated companies must report their emissions for the year 2021 by July 31, 2022 for the first time and submit certificates for the reporting year 2021 in the emissions trading register of the German Emissions Trading Authority (DEHSt) by September 30, 2022.

The Leipzig energy exchange EEX, which is already auctioning the certificates within the framework of the European emissions trading system (EU ETS), was awarded the contract to issue emissions certificates last week. From 2026, the emission certificates are to be auctioned there as soon as free trade is to begin.

Advantag will expand its service areas and, as an intermediary, supply customers from the area of ​​national emissions trading with the required amount of certificates and at the same time advise them on the nETS.

The prices for EU emission allowances (EUA) fell slightly last week and closed on the spot market after a recovery on Friday with a slight minus at EUR 41.63 per ton of CO2e.

What is remarkable, however, is the price development for CER certificates from CDM projects, which can only be used until April 30, 2021 for the partial fulfillment of the tax obligation. These have risen sharply in recent weeks, as CERs of some CDM projects can be used as part of the global CORSIA aviation emissions trading scheme and are therefore subject to increased demand. In addition, plant operators who are obliged to participate in the EU emissions trading system check their last usable quotas for the third trading period and are currently having them procured.

(Average Quotes Exchange / OTC)
Instrument	19/03/2021	26/03/2021	Change
EUA (Spot-Market)	41.85 EUR	41.63 EUR	-0.22 EUR
EUA (December-2021-Future)	41.97 EUR	41,73 EUR	-0.24 EUR
CER (Spot-Market)	0.44 EUR	0.50 EUR	+0.06 EUR
ICE Brent Crude Oil (Benchmark Future)	64.52 USD	64.47 USD	-0.05 USD
EURO (Currency, Forex)	1.1905 USD	1.1794 USD	-0.0111 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

Dear Sir or Madam,

Last week, the German Federal Environment Agency, together with the Federal Environment Ministry, announced the preliminary figures for Germany’s greenhouse gas emissions.

Germany emitted a total of around 739 million tons of CO2e last year, which was around 70 million tons less than in 2019, a decrease of 8.7%.

Thus, thanks to the help of the corona pandemic and the associated decline in the transport and industrial sector, with 40.8%, Germany still met the target of 40% emissions reduction compared to the reference year 1990. Insofar as Germany does not exhaust all options to take additional measures to reduce emissions, it remains to be feared that emissions will rise sharply again after the corona crisis has tapered off.

Due to the sharp rise in prices in EU emissions trading, however, CO2 has also been successfully saved in the energy sector, since the generation of electricity from coal, which is particularly harmful to the climate, has become increasingly unprofitable and is being replaced by gas in addition to renewable energies.

A decrease of around 38 million tons of CO2 was achieved here, which means a decrease of 14.5% compared to 2019. At around 221 million tons of CO2, the emissions were clearly below the annual emission volume of 280 million tons permitted in the Federal Climate Protection Act. The generation of electricity from lignite fell by 23 million tons and the generation of electricity from hard coal fell by 13 million tons of CO2.

The transport sector fell by 11.4% to 146 million tons of CO2 and the industrial sector by 4.6% to 178 million tons. Agriculture also reduced its emissions by 2.2% to 66 million tons of CO2 or its equivalent (CO2e), and the waste sector also made its contribution with a minus of 3.8%.

However, emissions in the building sector fell comparatively little by just 2.8% to 120 million tons of CO2e. The effects of the increase in home office can be seen here, as household emissions have risen slightly. The upper limit of 118 million tons resulting from the Climate Protection Act was exceeded by two million, which makes further savings necessary in this sector in particular, which is to be promoted by the national emissions trading, which came into force this year.

The prices in the European emissions trading system EU ETS rose again in the last week of trading and, in addition to the DAX, showed that they are also capable of repeated all-time highs. This record was set on Thursday at 43.77 in the December contract and trades above the 44 mark were already reported on the spot market. Towards the end of the last week of trading, the futures market closed just below 42 euros due to profit-taking; the CERs increased significantly to EUR 0.44 with a view to the approaching end of the submission period for 2020.

In any case, it will be exciting to see how the prices will move towards the submission deadline, as there are still some system operators who have not yet decided to buy due to the high price level. Should the bulls continue to hold the scepter in their hands, this reluctance could turn out to be very expensive due to the current bull market.

(Average Quotes Exchange / OTC)
Instrument	12/03/2021	19/03/2021	Change
EUA (Spot-Market)	42.79 EUR	41.85 EUR	-0.94 EUR
EUA (December-2021-Future)	42.85 EUR	41,97 EUR	-0.88 EUR
CER (Spot-Market)	0.39 EUR	0.44 EUR	+0.05 EUR
ICE Brent Crude Oil (Benchmark Future)	69.21 USD	64.52 USD	-4.69 USD
EURO (Currency, Forex)	1.1952 USD	1.1905 USD	-0.0047 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