Emissions Trading / Carbon Market News (2019-01-21)

Dear Sir or Madam,

The price of oil has risen sharply during the third consecutive trading week and has rallied around 9.00 USD a barrel during this period. In addition to the hope for a change of attitude in the trade dispute between the USA and China, a clear cut in production volumes from ??the OPEC countries pushed the price significantly up. Although some analysts forecast an even stronger price increase, some factors tend to argue against it. Thus, according to the abovementioned reduction in production, the total output is still well above the demand level and at the same time the USA has reported a record output of 11.9 million barrels per day.

While In June 2016, the relatively surprising outcome of the British referendum on leaving the European Union had triggered a huge drop in emissions allowances, this topic currently no longer plays a significant role. Neither the failed vote on the Brexit deal on Tuesday, nor the failed vote on the motion of no confidence against Theresa May, had a negative effect on the price performance of the EUAs.

Instead, the icy winter temperatures and the constantly rising oil prices pushed CO2 close to the 25 euro mark. Thus, even in the current trading week, it is unlikely that the political events in London and Brussels will affect the price of pollution rights.

(Average Quotes Exchange / OTC)      
Instrument 2019-01-11 2019-01-18 Change
EUA (Spotmarket) 22.59 EUR 24.83 EUR +2.24 EUR
EUA (December-2019-Future) 22.60 EUR 24.86 EUR +2.26 EUR
CER (Spotmarket) 0.24 EUR 0.24 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 60.40 USD 62.59 USD +2.19 USD
EURO (Currency, Forex) 1.1466 USD 1.1367 USD -0.0099 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 or +44.20.79790283.

With kind regards,

Advantag Services GmbH

Emissions Trading / Carbon Market News (2018-01-14)

Dear Sir or Madam,

Since the beginning of November 2018, there has not been an auction for emission rights from German contingent at EEX, as the EU first had to confirm EEX as a platform for the auctioning of German certificates. As a result, 21,807,000 EUA less came on the market in the past year, which will now also be auctioned in the new year. At the end of last week, the Leipzig EEX was able to announce the current auction data for 2019.

Overall, Germany will auction on the EEX between 01.02.2019 and 13.12.2019 now 156,028,500 EUA. Regularly, 3,209,000 EUA from German contingents come weekly until July, taking into account the reduction of the Market Stability Reserve (MSR) for the weekly auction. The volume is halved in August and from September to mid-December the auction volume is 4,732,500 EUA.

As this was expected by most of the market participants, there was no particular reaction from the EUA course. In the past trading week, prices ranged between 21.18 and 23.26 euros per EUA; The weekly closing price was slightly lower than in the previous week and was at 22.59 Euro on the spot market, which was only one cent away from the December 2019 futures market contract.

(Average Quotes Exchange / OTC)      
Instrument 2019-01-04 2019-01-11 Change
EUA (Spotmarket) 23.49 EUR 22.59 EUR -0.90 EUR
EUA (December-2019-Future) 23.73 EUR 22.60 EUR -1.13 EUR
CER (Spotmarket) 0.24 EUR 0.24 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 57.07 USD 60.40 USD +3.53 USD
EURO (Currency, Forex) 1.1395 USD 1.1466 USD +0.0071 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 or +44.20.79790283.

With kind regards,

Advantag Services GmbH

Emissions Trading / Carbon Market News (2019-01-04)

Dear Sir or Madam,

The share of renewable energies in power generation in Germany has cracked 40% last year. On average, 40.4% of the electricity produced in Germany, equivalent to 219 terawatts, came from wind, solar, biomass, hydropower or other renewable sources. At 20.4%, wind power was the clear leader, followed by photovoltaics (8.4%) and biomass (8.3%). For the first time ever in Germany, the renewable industry has generated more electricity than the burning of coal. Brown coal was at 24.1% in 2018 and hard coal at 13.9%. Including gas (7.3%), fossil energy producers only accounted for 45% last year.

In the 49th week of 2018, 53.5% of energy production was generated by renewable energy, but the best weekly value was in the 52nd kW of 2017, where as much as 58.3% of the electricity came from renewable sources.

Since 2010, the share of renewables of 19.3% has more than doubled in Germany and it has been the network operators despite the many times in the past years predicted blackouts have always managed to keep the network stable, even if the cost has caused billions. The completion of the power lines to the south of Germany is therefore more important than ever as the proportion of renewable energies increases.

Although oil prices rose significantly in the last week due to speculation that Saudi Arabia had reduced its oil production, prices for European emission allowances (EUA) fell and closed below the € 24 mark.

This week, the auctions at the Leipzig EEX start again after the winter break. Monday, Tuesday and Thursday each want to find 2.495 million EUA customers, for a total of 7.485 million EUAs. In the following week, there are significantly more due to the Polish auction, namely 11.9135 million EUA and 640,000 emission allowances for air traffic (EUAA).

(Average Quotes Exchange / OTC)      
Instrument 2018-12-28 2019-01-04 Change
EUA (Spotmarket) 24.95 EUR 23.49 EUR -1.46 EUR
EUA (December-2019-Future) 24.98 EUR 23.73 EUR -1.25 EUR
CER (Spotmarket) 0.25 EUR 0.24 EUR -0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 53.54 USD 57.07 USD +3.53 USD
EURO (Currency, Forex) 1.1440 USD 1.1395 USD -0.0045 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

Emissions Trading / Carbon Market News (2018-12-31)

Dear Sir or Madam,

Also on the last day of 2018 we would like to take a brief look at the trading activity on the carbon market. Usually, the annual winter break at the auctions is used by many market participants for a holiday and so it comes only to very low trading volume. Nevertheless, there was a wide price range between EUR 24.20 and EUR 25.50.

Another look is dedicated to the auction calendar of the EEX, which, however, is currently still incomplete. For example, the first auctions will start on Monday, January 7, 2019, but the numbers and dates for auctions of German certificates are still missing, as are those of the EFTA states Iceland, Liechtenstein and Norway, which are participating in the ETS for the first time. Poland has already reached an agreement on its national auctions. As already announced, nearly 118 million EUAs will be auctioned by our eastern neighbors in the coming year, what means around 39 million allowances more than in 2018.

Today’s date is worth mentioning the fact that two percent of the total particulate matter pollution of the coming year will be generated in the first few minutes from midnight. So strong is the degree of air pollution from the New Year’s Eve fireworks. Against this background, the community Kreuth in Oberbayern has attracted attention with an exemplary action. Kreuth is a health resort and lies on the southern shore of the famous Tegernsee. It sounds understandable that this year the council has unanimously decided to call residents and guests to a voluntary renunciation of a blazing fireworks. Instead, the community hosts a dazzling celebration with no bang effects. At midnight there is a laser show. “With a fireworks renunciation you help to reduce the particulate matter in our place and do at the same time something good for the animals in our community, that are scared by the noise of the New Year’s Eve rockets,” writes the mayor in a community letter and recommends immediately to donate the money saved by giving up bangers to a reasonable cause.

(Average Quotes Exchange / OTC)      
Instrument 2018-12-21 2018-12-28 Change
EUA (Spotmarket) 24.88 EUR 24.95 EUR +0.07 EUR
EUA (December-2019-Future) 24.92 EUR 24.98 EUR +0.06 EUR
CER (Spotmarket) 0.24 EUR 0.25 EUR +0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 55.05 USD 53.54 USD -1.51 USD
EURO (Currency, Forex) 1.1373 USD 1.1440 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. 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 or +44.20.79790283.

With kind regards,

Advantag Services GmbH

Emissions Trading / Carbon Market News (2018-12-24)

Dear Sir or Madam,

Dear Madam or Sir,

Although the year 2018 is not quite over yet, but of course the data collected so far by the German Weather Service (DWD) are sufficient for the statement that we had the warmest year in Germany since the beginning of the weather records. The previous record year of 2014 was exceeded by a further tenth degree of the full year average. But that’s not the only record, because with over 2000 hours of sunshine, 2018 was also the sunniest year. Particularly worrying, according to the vice-president of the DWD, Paul Becker, that eight of the nine warmest years since 1881 fall into the 21st century. He therefore summarized with the words: “The warming continues unchecked, the climate change holds Germany in a vice-like grip”.

But the year 2018 was also characterized by a dramatically positive price trend for CO2 emission certificates. The European Pollution Rights course moved from a level in the range of EUR 7.00 to EUR 7.50 at the beginning of the year to more than EUR 25.00 due to the decisions to reform the trading system. No analyst had seriously expected this rapid price increase, but rather a more gentle increase for the years between 2018 and 2021. For this reason, some market observers have significantly revised their forecasts upwards for the coming years.

By contrast, the price of oil had fallen by around 10 percent in the course of the last trading week. Here, both the economic concerns of investors and the market data themselves seem to play a decisive role.

(Average Quotes Exchange / OTC)      
Instrument 2018-12-14 2018-12-21 Change
EUA (Spotmarket) 23.36 EUR 24.88 EUR +1.52 EUR
EUA (December-2019-Future) 23.37 EUR 24.92 EUR +1.55 EUR
CER (Spotmarket) 0.25 EUR 0.24 EUR -0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 60.11 USD 55.05 USD -5.06 USD
EURO (Currency, Forex) 1.1305 USD 1.1373 USD +0.0068 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 or +44.20.79790283.

With kind regards,

Advantag Services GmbH