Dear Sir or Madam,

ETH Zurich wants to make the consequences of climate change more tangible and has shown the changes in climatic conditions in various cities in 2050. So who likes to travel from Berlin to San Marino in Italy due to the weather and spend his holidays there, can save himself in about 30 years, because in Berlin then the same conditions prevail and it will be uncomfortably hot in Italy. The climate of Madrid is comparable to that of today’s Marrakech and London will reach temperatures at the current level of Barcelona. So much for the pleasant news – however, a good quarter of the world’s cities will experience climatic conditions that are nowhere to be found anywhere else in the world, with high temperatures, droughts and extreme precipitation.

To mitigate this by reducing greenhouse gases to the level desired by the Paris Agreement on Climate Change, the Federal Council of Economic Experts, also known as the Five Wise Man, has prepared an opinion for the German Federal Government. In order to gain rapid control effects, they have recommended a CO2 tax on fuels and heating oil in order to price the emission of CO2 and act as an example internationally. Initially, the output of one tonne of CO2 should cost 50 euros and increase to 130 euros by 2030.

The better solution to a tax is, according to the industry, CO2 emission trading, but it will take too much time to be transposed into EU law, and action must be taken by the time other sectors are included in the EU emissions trading scheme Objectives of the climate change agreement. The Climate Cabinet of the Federal Government will meet next Thursday and will discuss concrete proposals for reducing CO2 emissions.

The prices for EU emission allowances have become significantly more expensive in the past week and marked a new 11-year high with more than 28 euros. Accompanied by rising energy prices, the market looks set to halve its auction volume in August, as well as the visible reduction in auction volumes during the last four months of the year. This week, EEX will be offering auctions totaling 15,964,000 EUA and 892,000 EUAA. In the coming week, there are 11,534,000 EUA and from Thursday the following week begins the halving of auction volumes taking place every summer.

(Average Quotes Exchange / OTC)
Instrument	28/06/2019	05/07/2019	Change
EUA (Spotmarket)	26.23 EUR	26.33 EUR	+0.10 EUR
EUA (December-2019-Future)	26.28 EUR	26.38 EUR	+0.10 EUR
CER (Spotmarket)	0.21 EUR	0.21 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	66.72 USD	64.49 USD	-2.23 USD
EURO (Currency, Forex)	1.1371 USD	1.1229 USD	-0.0142 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 Friday, the Federal Environment Ministry presented the results of three scientific studies on the socially responsible taxation of CO2 in Germany. Between the predominantly undisputed understanding that every person has to personally contribute something to the reduction of greenhouse gases and the trivial fact that people voluntarily seldom do so, an acceptable political solution should be found.

Federal Environment Minister Svenja Schulze has highlighted a so-called “climate premium” as a central result of the expert reports. The idea behind it is a kind of reward principle, which is supposed to serve as an engine for the reduction of CO2 and its equivalents already in obligatory European emissions trading. Theoretically, it should work in such a way that the carbon tax, which is still to be quantified, does not flow into the state as revenue, but is repaid in stages to the citizens. In the average case, a household would therefore receive the tax refunded in full. The variants are, however, in the actual carbon footprint. If this is significantly low, money is left over, but if you behave more damaging to the environment, the repayment is correspondingly lower. Thus, according to the common opinion of the scientists and the Minister, a steering effect for climate protection would be created. Whether this idea will be established as a wearable political model remains to be seen. However, the minister emphasized that climate change will not allow any further hesitation if parts of the earth should not become uninhabitable for humans.

Actually the transport and buildings sectors are reversing the savings in the energy sector. According to initial calculations by the German Energy Industry Association, in the first half of 2019 the share of renewables in electricity consumption was higher than ever before, which resulted in a 15 percent less CO2 emissions compared to the first half of 2018. However, this positive effect is already evaporating in Germany in the sectors that have not yet been regulated, which also includes the continuing rise in flying tourism. Unfortunately, development worldwide is still scary. This is shown by the absolute measurement results of the Mauna Loa Observatory in Hawaii. Recently, at 415.26 ppm, the highest concentration of CO2 in the earth’s atmosphere was measured since the beginning of records. The Observatory also pointed out that the three strongest climbs were seen in the past four years – which were also the four warmest years since recording began.

The market for European Pollution Rights has shown its unstable side in the past week. After a recovery period at the beginning of the week, the price rose to a high of 27.36 EUR, but was then significantly burdened by the usual quarterly technical sales. At a level of around EUR 25.70, the price was clearly supported again and was continuously rising up ever since. In today’s early trading, the December Future is already valued one euro higher.

(Average Quotes Exchange / OTC)
Instrument	28/06/2019	05/07/2019	Change
EUA (Spotmarket)	26.23 EUR	26.33 EUR	+0.10 EUR
EUA (December-2019-Future)	26.28 EUR	26.38 EUR	+0.10 EUR
CER (Spotmarket)	0.21 EUR	0.21 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	66.72 USD	64.49 USD	-2.23 USD
EURO (Currency, Forex)	1.1371 USD	1.1229 USD	-0.0142 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 current heatwave in Europe is exceptional for the end of June. For example, 45.9 ° C was measured on Friday in Gallargues-le-Montueux in southern France, a new nationwide heat record. And also in Germany, the weather was much hotter last weekend than in June, yesterday in Bernburg 39.6 ° C were reached. The entire June in Germany was 4°C warmer than the long-term average and the continuing drought in parts of Germany endangered the drinking water supply of individual communities already at the beginning of the summer.

In the past week, the interim negotiations in Bonn ended, which should further advance the implementation of the Paris Agreement on Climate Change. At the same time, the World Climate Change Conference (COP25) was prepared in December in Santiago de Chile. An important point here were rules for the international emission trading markets, which, however, could not finally reach a draft resolution.

European emission allowances picked up again last week and ranged between EUR 25.21 and EUR 27.48. On a weekly basis, they closed with a gain of just under one euro. Last Tuesday, the auction on EEX of 2,775,500 EUA failed due to lack of demand, which is why these certificates were auctioned last Thursday and in three auctions this week. Thus, a total of 18,046,000 EUAs will be offered this week instead of the originally planned 15,964,000 EUAs.

(Average Quotes Exchange / OTC)
Instrument	21/06/2019	28/06/2019	Change
EUA (Spotmarket)	25.24 EUR	26.23 EUR	+0.99 EUR
EUA (December-2019-Future)	25.30 EUR	26.28 EUR	+0.98 EUR
CER (Spotmarket)	0.20 EUR	0.21 EUR	+0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	62.25 USD	66.72 USD	+1.47 USD
EURO (Currency, Forex)	1.1367 USD	1.1371 USD	+0.0004 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 permafrost soils are currently thawing much faster than was calculated in the climate models. According to a report by the Geophysical Research Letters, the soil in some Canadian regions has already thawed as much as was calculated for the year 2090. In some cases, the ground has already dropped by almost one meter over the past 15 years. The big problem with thawing permafrost soils is that microbes decompose the thawing plant material, releasing huge amounts of greenhouse gases, especially methane. Methane is 25 times more harmful to the climate than CO2 and remains between 9 and 15 years in the atmosphere of our planet. Should global warming accelerate the process of thawing permafrost soils, this will have a significant impact on global warming. To prevent this, there is an urgent need to reduce human-induced greenhouse gas emissions without delay.

Prices for EU CO2 emissions continued to rise for EU ETS compliance traded companies last week, driven in particular by the rise in fossil fuel prices. This week, a total of 11.5 million EUA will be offered at the auctions at the Leipzig EEX.

(Average Quotes Exchange / OTC)
Instrument	14/06/2019	21/06/2019	Change
EUA (Spotmarket)	25.00 EUR	25.24 EUR	+0.24 EUR
EUA (December-2019-Future)	25.05 EUR	25.30 EUR	+0.25 EUR
CER (Spotmarket)	0.20 EUR	0.20 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	62.09 USD	65.25 USD	+3.16 USD
EURO (Currency, Forex)	1.1208 USD	1.1367 USD	+0.0159 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,

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