Dear Sir or Madam,

Today, the UN Climate Change Conference begins in Bonn, in which 3,000 climate experts from many nations will take part over the next 10 days. The German Federal Government has also officially announced its ambitious target of achieving greenhouse gas neutrality for the European Union by 2050. However, greenhouse gas neutrality does not mean that greenhouse gases can not be emitted in just 31 years. Rather, it means that greenhouse gas emissions, which are difficult to avoid, such as in parts of the transport sector, industry or agriculture, have to be compensated by other projects. These include, for example, afforestation projects or plants that remove CO2 from the atmosphere or industrial processes in order to use or store it.

The pressure of the public, not least because of the persistent actions of the children and young people in the framework of the Fridays for Future movement, have probably a considerable share in this, as can be seen in the current election polls, in which the Greens are now the strongest party became. Because before such election results, the current German people’s parties are currently more afraid than before the climate catastrophe. A welcome side effect is that it shows all skeptics of democracy that citizens can force political leaders to act.

The prices for the emission of one tonne of CO2 in the EU emissions trading system rose again slightly in the past trading week and show the 25th before the decimal point at the end of the week. Nearly 16 million new emission rights will be auctioned at EEX this week. There will be no Polish auction in the coming week, which is why only 11.5 million certificates will be offered.

(Average Quotes Exchange / OTC)
Instrument	07/06/20119	14/06/2019	Change
EUA (Spotmarket)	24.44 EUR	25.00 EUR	+0.56 EUR
EUA (December-2019-Future)	24.51 EUR	25.05 EUR	+0.54 EUR
CER (Spotmarket)	0.21 EUR	0.20 EUR	-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	63.18 USD	62.09 USD	-1.09 USD
EURO (Currency, Forex)	1.1332 USD	1.1208 USD	-0.0124 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 government seems to be forced by the climate protection protests and the success of the Greens to rethink their climate policy. For September, it has therefore announced far-reaching fundamental decisions. Chancellor Angela Merkel even spoke of “disruptive changes”. The CSU environmental expert Anja Weisgerber announced in this context an extensive climate protection package, which should be decided later this year. Federal Environment Minister Svenja Schulze had already submitted a draft of a Climate Protection Act in which the sectors housing, transport, industry and agriculture should be held accountable. However, CO2 pricing should be regulated in the European context, which in our view makes sense, as national unilateral action could force the economy to relocate.

Extending emissions trading to other sectors while maintaining the current level of allowances would raise prices significantly, but such decisions would have to pass through the EU’s decision-making bodies, which would take time. At the same time, it is by no means certain that such aspirations will be fruitful in current political developments. Therefore, the fall will be interesting, because then will show what the Federal German Chancellor regards as a disruption – a very strong concept by their standards. Since her chancellorship is now coming to an end, it would not be surprising that she now wants to tackle something that should optimize her place in the history books.

The fact that EU emissions trading works because of higher prices is also demonstrated by the decline in CO2 emissions from the stationary systems involved. Last year, they caused 3.5% less emissions, equivalent to 422 million tons. In particular, the energy industry, which generates 70% of the greenhouse gas emissions of CO2 traffickers, has made considerable savings here, not least because of the increased share of renewable energies.

In the past trading week, the prices for the emission of one tonne of CO2 increased only insignificantly despite a high auction volume of almost 16 million EUA. Due to the Whitsun Monday, only three auctions will take place this week at the Leipzig EEX, in which a total of 8,760,000 EUA will be on offer.

(Average Quotes Exchange / OTC)
Instrument	31/05/20119	07/06/2019	Change
EUA (Spotmarket)	24.41 EUR	24.44 EUR	+0.03 EUR
EUA (December-2019-Future)	24.46 EUR	24.51 EUR	+0.05 EUR
CER (Spotmarket)	0.21 EUR	0.21 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	61.64 USD	63.18 USD	+1.54 USD
EURO (Currency, Forex)	1.1167 USD	1.1332 USD	+0.0165 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 oldest German party, the SPD, is in an existential crisis. The crashes in the European elections and in the election in Bremen have further added to the party, which is why the party leader Andrea Nahles will resign at the beginning of this week, both as party leader and as SPD party leader. Who will succeed, is so far unclear, because the post is characterized by eight party leaders in just 15 years of no great attraction.

Whether the grand coalition will survive this is more doubtful. That the CDU is not interested in new elections can be seen in the reassuring comments of the German Chancellor. If new elections are to be held in the autumn, according to current polls, this would also trigger significant losses for the Union. In one of the last surveys this ranked behind the Greens.

One thing is already certain – the topic of environmental and climate protection has arrived in the middle of the population, as can be seen from the current success of the Greens. Therefore, this topic will certainly remain present in the coming months.

The massive trade disputes that have ushered in US President Donald Trump have put massive pressure on financial markets at the end of last week. Crude oil was also one of the big losers in the commodity markets. Within two days Brent lost more than 10%. The market sentiment did not spare the prices for European emission rights, which left the sideways movement and also clearly lost on Friday. This week comes a relatively high auction volume on the market. Due to the Polish and German auction, a total of 15,694,000 EUA will be auctioned at EEX this week over five days. Next week, only 8,760,000 EUAs will be offered next Whitsun Monday.

(Average Quotes Exchange / OTC)
Instrument	2019-05-24	2019-05-31	Change
EUA (Spotmarket)	25.42 EUR	24.41 EUR	-1.01 EUR
EUA (December-2019-Future)	25.47 EUR	24.46 EUR	-1.01 EUR
CER (Spotmarket)	0.21 EUR	0.21 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	68.41 USD	61.64 USD	-6.77 USD
EURO (Currency, Forex)	1.1204 USD	1.1167 USD	-0.0037 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 European elections have clearly shown that it is not advisable for established politicians to meet arrogance with young people who are well-founded worries about the future. Environmental and climate protection was therefore an important issue for the electorate, especially among the younger to mid-forties. The German CDU / CSU Union and especially the SPD suffered heavy losses, while the Greens won the election day. More than one in five Germans voted for the Greens with visibly increased turnout; in the voters until the middle of 20 even every third person. Whether the grand coalition in Germany will be continued until the end of the legislative period in view of these election results will be shown in the coming weeks. However, one thing should be clear – the issue of climate and environmental protection will not disappear again in the coming weeks and it would be very surprising if the losers of yesterday evening did not try to outdo each other with ideas to score points here.

Oil prices dropped sharply on Thursday, helped by significantly increased US crude oil inventories, which rose 4.7 million barrels last week. Regardless, CO2 emission rights prices rose again from the previous week, closing at just under 2%. This week there will be only one auction on EEX for 2.495.000 EUA on Tuesday, but this should already be priced in. Among other things, financial markets should be busy analyzing the outcome of the European elections in the coming days, which should also apply to the market for emission allowances.

(Average Quotes Exchange / OTC)
Instrument	2019-05-17		2019-05-24	Change
EUA (Spotmarket)	24.94 EUR		25.42 EUR	+0.48 EUR
EUA (December-2019-Future)	25.00 EUR		25.47 EUR	+0.47 EUR
CER (Spotmarket)	0.22 EUR		0.21 EUR	-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	72.08 USD		68.41 USD	-3.67 USD
EURO (Currency, Forex)	1.1157 USD		1.1204 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

Dear Sir or Madam,

US oil giant Exxon has been a denial of climate change for many years, floating on a wave with US President Donald Trump and other populists around the world. The company has repeatedly tried to sow doubts about whether climate change is caused by humans.

Exxon was well aware that climate change was caused by the use of fossil fuels like oil. As early as 1982, the Group itself produced forecasts that showed the evolution of the global average temperature in relation to the CO2 concentration in the air. This calculation was so precise that it predicted the CO2 concentration for 2019 at 420 ppm (Particles Per Million) and a warming of 0.9°C over pre-industrial times.

Currently, the CO2 content is already at 415 ppm and should be according to the study in the year 2050 at about 500 ppm, which would correspond to a global warming of 2°C. By 2080, the calculation would have reached 3°C at a concentration of 600 ppm CO2 in the atmosphere.

There are also politicians and parties in Europe who deny human-induced climate change, even though they have sufficient scientific evidence to prove the link between greenhouse gas emissions and global warming. Next Sunday is the European elections and one can only hope for future generations that there are enough intelligent voters who refuse to speak out to liars who speak of clean diesel and negate climate change.

CO2 emission allowances rose more sharply by the middle of the week last week, but eased slightly at the end of the trading week as the US-China trade dispute weighed on sentiment in the financial markets. A total of 15,235,000 emission allowances will be auctioned on EEX this week, including 112,500 EUAA for aviation. Next week, only 2,495,000 EUAs will be auctioned on Tuesday. Therefore, the demand for the auctions this week should be interesting.

(Average Quotes Exchange / OTC)
Instrument	2019-05-10		2019-05-17	Change
EUA (Spotmarket)	25.54 EUR		24.94 EUR	-0.60 EUR
EUA (December-2019-Future)	25.62 EUR		25.00 EUR	-0.62 EUR
CER (Spotmarket)	0.22 EUR		0.22 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	70.60 USD		72.08 USD	+1.48 USD
EURO (Currency, Forex)	1.1233 USD		1.1157 USD	-0.0076 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