Dear Madam or Sir,

Last Wednesday, the German government approved the Climate Protection Report 2019. According to the report, total emissions in 2019 fell by almost 54 million tonnes of CO2 equivalents to around 805 million tonnes compared with 2018, which represents a reduction of 6.3 percent. Against the background of Germany’s greenhouse gas reduction targets, Germany has emitted around 35.7 percent less greenhouse gases in 2019 than in the reference year 1990. The Climate Protection Act stipulates a reduction of at least 35 percent by 2020 and at least 55 percent by 2030 (in each case compared to 1990). In accordance with the coalition agreement, the 2010 energy concept includes non-binding greenhouse gas reduction targets of 40 % for 2020. In the meantime, this mark seemed hardly achievable. However, as the current climate protection report now makes clear, in addition to the measures of the “Action Programme Climate Protection 2020”, in particular the EU emissions trading with significantly higher certificate prices has made a stronger reduction contribution than was expected six months ago. Moreover, as the report is limited to the year 2019, the effects of the Covid 19 pandemic could not yet be taken into account. If the actual greenhouse gas emissions for the year 2020 are significantly lower, the 40 percent target could still be achieved.

At the beginning of the past trading week, the price of EUAs received tailwind from the bullish energy complex and strong auction results and rose towards the 27 euro mark. Then, however, an unexpected server problem occurred on Wednesday, which shut down the entire emissions registry for the rest of the week. The European Commission stated in a commentary on Thursday that this technical problem could be solved by the end of the week, which was successfully implemented. However, the initial uncertainty about possible backgrounds and the fact that no physical trading could take place for days pushed the price down to a stable level below the 26 Euro mark.

(Average Quotes Exchange / OTC)
Instrument	14/08/2020	21/08/2020	Change
EUA (Spotmarket)	25.45 EUR	25.60 EUR	+0.15 EUR
EUA (December-2020-Future)	25.48 EUR	25.65 EUR	+0.17 EUR
CER (Spotmarket)	0.29 EUR	0.29 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	44.95 USD	44.28 USD	-0.67 USD
EURO (Currency, Forex)	1.1840 USD	1.1799 USD	-0.0041 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 Madam or Sir,

While the Corona crisis significantly increases the likelihood that Germany will still achieve its self-imposed CO2 reduction target of 40% compared to 1990, the Federal Government remains on the ball and convenes an independent expert council on climate issues. This consists of the members Prof. Dr. Marc Oliver Bettzuege, Cologne; Prof. Dr. Thomas Heimer, Wiesbaden; Prof. Dr. Hans-Martin Henning, Freiburg; Dr. Brigitte Knopf, Berlin; Dr. Barbara Schlomann, Karlsruhe.

This expert council examines the estimate of the greenhouse gas emissions of the previous year submitted by the Federal Environment Agency as well as the assumptions on which the information on the greenhouse gas reduction effect of immediate measures and climate protection programs is based. He should continue to provide his expertise in the event that the German government changes the permissible annual emissions in the Federal Climate Protection Act or decides on further climate protection measures. In addition, the German government or the Bundestag can commission the Expert Council to prepare special reports.

In the past week, the market for European CO2 emission rights continued to decline and also consumed the 25 euro mark down, only to maintain itself well above this mark by the weekend. The new trading week also starts more pleasantly, not least because the energy markets offer some support here.

(Average Quotes Exchange / OTC)
Instrument	07/08/2020	14/08/2020	Change
EUA (Spotmarket)	26.36 EUR	25.45 EUR	-0.91 EUR
EUA (December-2020-Future)	26.42 EUR	25.48 EUR	-0.94 EUR
CER (Spotmarket)	0.30 EUR	0.29 EUR	-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	44.64 USD	44.95 USD	+0.31 USD
EURO (Currency, Forex)	1.1785 USD	1.1840 USD	+0.0055 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 Madam or Sir,

Midsummer temperatures in Europe, which meteorologists believe will last for several more days, have contributed to the price for CO2 emission rights closing with a slight weekly increase in the first week of August, as the air conditioning systems in buildings have a high energy consumption.

Due to the Polish auction taking place on Wednesday, 9.2 million EUA will be auctioned this week at the Leipzig EEX, followed by 6.6 million CO2 certificates in the coming week.

The summer break ends at the beginning of the 36th calendar week on August 31st and the auction volume is halved. Due to the Summer Bank Holiday on August 31, 2020 and an EEX event on Thursday, September 4, only two auctions with a total of 6.6 million EUA will take place in calendar week 36.

Thus, the start of the higher auction volume does not begin until the 37th calendar week, in which a total of 21.7 million certificates will be offered, including 810,500 emission rights for the aviation industry on September 9th.

(Average Quotes Exchange / OTC)
Instrument	31/07/2020	07/08/2020	Change
EUA (Spotmarket)	26.21 EUR	26.36 EUR	+0.15 EUR
EUA (December-2020-Future)	26.28 EUR	26.42 EUR	+0.14 EUR
CER (Spotmarket)	0.28 EUR	0.30 EUR	+0.02 EUR
ICE Brent Crude Oil (Benchmark Future)	43.70 USD	44.64 USD	+0.94 USD
EURO (Currency, Forex)	1.1777 USD	1.1785 USD	+0.0008 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 Madam or Sir,

The Environmental Action Germany (Deutsche Umwelthilfe e.V. – DUH) has made its own evaluation of data from the Federal Environment Agency and compared the nitrogen pollution in the air between cities against which the association had successfully filed suit and those cities against which no suit was filed. It came to the conclusion that the decrease in air pollution in the cities complained about was twice as high as in the other cities. DUH attributes the greater decrease to enforced driving bans on old diesel vehicles. This at least shows that local initiatives, as controversial as they may be, apparently lead to measurable effects.

On a global level, concerned scientists are constantly looking towards the Arctic. The temperature of 21.2 degrees recently measured in Svalbard has only been exceeded once since weather records began, in the summer of 1979. Normally, the average temperature during the summer months is only 5 – 8 degrees. At the same time, the Alfred Wegener Institute (AWI) in Bremerhaven has noted a historical decrease in sea ice around the North Pole. The unusually high temperatures, especially in the Russian part of the polar region, are also being noted as a cause.

In the course of the correction in the CO2 market, the price sought to approach the 25-euro mark in the short term during the past trading week, but this proved to be a fundamental support. As a result, the price rose again significantly and established itself above the 26-euro line. As of today, auction volumes on the EEX have been reduced to half, as usual in August.

(Average Quotes Exchange / OTC)
Instrument	24/07/2020	31/07/2020	Change
EUA (Spotmarket)	26.29 EUR	26.21 EUR	-0.08 EUR
EUA (December-2020-Future)	26.37 EUR	26.28 EUR	-0.09 EUR
CER (Spotmarket)	0.30 EUR	0.28 EUR	-0.02 EUR
ICE Brent Crude Oil (Benchmark Future)	43.26 USD	43.70 USD	+0.44 USD
EURO (Currency, Forex)	1.1655 USD	1.1777 USD	+0.0122 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 Madam or Sir,

The corona pandemic is in full swing in the United States and many countries in South America, and scientists in Europe are also concerned that a second wave will come at the end of the holiday season at the latest. How politics will deal with this second wave is so far unclear, but at least regional lockdowns are a possible option.

Even though the prices for Brent crude oil have been above the USD 40 mark since mid-June and the prices for non-ferrous metals such as copper, aluminium or zinc also testify to rising demand, the rapid rise in the crisis metal gold shows that Nervousness of investors, who currently do not really want to trust the significantly increased stock markets.

Shortly before the summer break and the jump above the 30 euro mark two weeks ago, the prices for CO2 certificates made a correction by taking profits, which also continued in the past week. From a technical point of view, the bullish trend is still there, as long as the support lasts in the range of approx. 26 euros.

(Average Quotes Exchange / OTC)
Instrument	17/07/2020	24/07/2020	Change
EUA (Spotmarket)	27.73 EUR	26.29 EUR	-1.44 EUR
EUA (December-2020-Future)	27.82 EUR	26.37 EUR	-1.45 EUR
CER (Spotmarket)	0.30 EUR	0.30 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	43.08 USD	43.26 USD	+0.18 USD
EURO (Currency, Forex)	1.1425 USD	1.1655 USD	+0.0230 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