Dear Sir or Madam,

Also last week, discussions on further pricing of greenhouse gas emissions at national level in Germany continued, although it will probably take some time before a consensus will be reached that sufficiently addresses both the social and environmental aspects. Even within the governing parties, the leading party members disagree on how to do this. The fact that something has to happen in addition to the current emissions trading scheme is clear to most politicians in order to at least comply with the climate protection targets in 2030. Whether pricing with an additional tax in the transport and building sectors makes sense is doubted by various bodies. These see an expansion of the functioning emissions trading as an economically sensible solution. The only question is how quickly a European solution can be found here, because such a bill has to be brought in turn by all EU political bodies, which would take much longer than the adoption of a national law.

The prices of emission allowances in the context of the EU emissions trading have again slightly declined in the past week compared to the previous week, which was also to be expected after the strong increase in April.

Due to today’s British bank holiday no auctions take place today on the EEX. Nevertheless, on the remaining days of the week, a total of 12,627,500 EUA and 640,000 EUAA for aviation will be auctioned. In the coming week there will be a total of 10,694,000 EUA. In the last week of May, Christ’s Ascension and Spring Bank Holiday in the UK will offer reduced auction volume of just 2,495,000 CO2 allowances.

(Average Quotes Exchange / OTC)
Instrument	2019-04-26	2019-05-03	Change
EUA (Spotmarket)	25.77 EUR	25.12 EUR	-0.64 EUR
EUA (December-2019-Future)	25.85 EUR	25.20 EUR	-0.65 EUR
CER (Spotmarket)	0.22 EUR	0.22 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	71.59 USD	71.06 USD	-0.53 USD
EURO (Currency, Forex)	1.1145 USD	1.1201 USD	+0.0056 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

Dear Sir or Madam,

Meanwhile, the grand coalition in Germany seems to find a consensus on a CO2 tax. The Federal Ministry of Economics also anticipates future pricing of CO2 emissions. In particular, fossil fuels are in the focus of the governing parties, which would increase the prices of heating oil, gas and fuels. However, the funds raised by this should be redistributed socially acceptable. Vice-President of the European Commission and PES candidate Frans Timmermanns also advocate Europe-wide pricing of CO2 in order to stimulate traffic and buildings. Whether other sectors should be included, is still unclear.

In the shortened trading week after the Easter holidays, prices for European CO2 emission allowances fell slightly, closing below the € 26 / ton mark last Friday. That now the majority of the taxable companies should now have covered with certificates, will also have played a role here. In the past week, 12.6 million EUA were launched in the EEX auctions, with 10,694,000 EUAs in this week, also reduced by the May day.

(Average Quotes Exchange / OTC)
Instrument	2019-04-18	2019-04-26	Change
EUA (Spotmarket)	26.81 EUR	25.77 EUR	-1.04 EUR
EUA (December-2019-Future)	26.89 EUR	25.85 EUR	-1.04 EUR
CER (Spotmarket)	0.25 EUR	0.22 EUR	-0.03 EUR
ICE Brent Crude Oil (Benchmark Future)	71.98 USD	71.59 USD	-0.39 USD
EURO (Currency, Forex)	1.1259 USD	1.1145 USD	-0.0114 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

Dear Sir or Madam,

Even during the third week of April, the carbon market remained unchanged in the hands of the bulls. This is traditionally the case, since for all companies included in the ETS the deadline for the compliance to surrender allowances ends. However, the price level of European pollution rights this year is spectacular. Since the beginning of the month, the market has gained up to six euros and has been relatively stable for two weeks within a price range between 26 and 28 euros.

However, already at the premature weekly close last Thursday, a number of traders took their profits in view of the upcoming holiday period, pushing the price down by just one euro compared to the peak at EUR 27.85. Against this background and with a comparatively full auction calendar, the price is likely to consolidate further this week.

(Average Quotes Exchange / OTC)
Instrument	2019-04-12	2019-04-19	Change
EUA (Spotmarket)	26.49 EUR	26.81 EUR	+0.32 EUR
EUA (December-2019-Future)	26.58 EUR	26.89 EUR	+0.31 EUR
CER (Spotmarket)	0.24 EUR	0.25 EUR	+0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	71.79 USD	71.98 USD	+0.19 USD
EURO (Currency, Forex)	1.1298 USD	1.1259 USD	-0.0039 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

Dear Sir or Madam,

The EU gives Britain half a year more time, thus preventing a disorderly Brexit for the time being. By 31.10.2019 at the latest, the British are now out of the EU. The 29.03.2019 was originally the planned exit date, but the EU has already granted an extension until last Friday.

Now that a chaotic no-deal Brexit is off the table for at least a couple of months, CO2 emissions rights rose sharply last week, reaching an 11-year high. At the top, the December 2019 future was € 27.85 per EUA last Friday, but the trading session was visibly down again. On a weekly basis, an increase of 8% to EUR 26.58 on the futures market ultimately remained.

Even though in the current trading week at 7,485,000 EUA, due to Good Friday, only about half of the previous week’s auction volume will be auctioned at the Leipzig EEX, the overbought market would need time to breathe. In spite of Easter Monday, 12,627,500 emission allowances will be auctioned again in the coming trading week, since in addition to the EU auctions, EUAs will also be offered from German and Polish contingents.

(Average Quotes Exchange / OTC)
Instrument	2019-04-05	2019-04-12	Change
EUA (Spotmarket)	24.52 EUR	26.49 EUR	+1.97 EUR
EUA (December-2019-Future)	24.60 EUR	26.58 EUR	+1.98 EUR
CER (Spotmarket)	0.23 EUR	0.24 EUR	+0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	70.37 USD	71.79 USD	+1.42 USD
EURO (Currency, Forex)	1.1214 USD	1.1298 USD	+0.0084 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

Dear Sir or Madam,

From a European perspective, the past year was good for climate protection – German CO2 emissions fell by 4.5% compared to 2017. Not least thanks to the sunny weather and a record of renewable energy generated, 41 million tons of greenhouse gases were saved. Lower livestock numbers (pigs -4%, cattle -3%) also contributed to this. Even the transport sector, which has risen steadily in recent years, has seen a decline of around 5 million tonnes or 2.9%.

All stationary installations in Europe subject to EU emissions trading also emitted 3.8% less CO2e. By contrast, the aviation sector added an inglorious 6.2% to more than 68 million tonnes of CO2. It is not surprising that the airline Ryanair has risen to the top 10 of the biggest climate sinners. Anyone who suspects only coal-fired power plants is obviously visibly wrong. The low budget airline Ryanair emitted just under 10 million tonnes (+ 7%) last year and other airlines such as Lufthansa (+ 9.6%) and Easyjet (+ 11%) followed this negative example.

After the disorderly Brexit has been delayed until the end of this week and even speculated on a second referendum, the CO2 emission allowances in the past week increased sharply. The question of how to proceed from this Friday will influence the carbon pricing accordingly.

(Average Quotes Exchange / OTC)
Instrument	2019-03-29	2019-03-29	Change
EUA (Spotmarket)	21.44 EUR	24.52 EUR	+3.08 EUR
EUA (December-2019-Future)	21.54 EUR	24.60 EUR	+3.06 EUR
CER (Spotmarket)	0.23 EUR	0.23 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	68.35 USD	70.37 USD	+2.02 USD
EURO (Currency, Forex)	1.1217 USD	1.1214 USD	-0.0003 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