Dear Ladies and Gentlemen,

The German car manufacturers are still telling the faerie tale from the environmental-friendly combustion engine and talking about the clean diesel engine. In that context one can read abstruse computations to outline electric vehicles as bad for the climate, especially regarding the production of the batteries.

Hereby they ignore the fact, that the production of a combustion engine, which has partially more than 1,000 parts of aluminium and other metals, needs significantly more raw materials, than an electric engine with 99% less parts. The production of a car with combustion engine has a carbon footprint between around 4 and 7.5 tons.

The easiest way is to compare two equal cars, the Smart for example. The production of that car with combustion engine emits 4.3 tons of carbon dioxide, the production of the electric Smart has an output of 5.2 tons (Source: life cycle assessment, Prof. Dr. Eckhard Helmes, Prof. Dr. Oliver Turk and others).

The model with combustion engine and a mileage of 100,000 Kilometre has a carbon footprint of around 20 tons, the green-electricity powered Smart emits in the same time 6 tons, which is 70% less. Of course, the source of power is very important, but also with the average of the German power mix, the electric Smart would have a carbon footprint of 14 tons, what is almost 30% less than the combustion car.

The significant global increase of electric cars – especially in Asia and America – needs more of lithium. That´s, why Bolivia invests millions in the production of the “white Gold”. Bolivia intents to produce a yearly output of 30,000 tons of lithium carbonate, which costs currently 13,000 USD per ton. At the moment, the world market leader in lithium, Chile, has reserves of 7.5 million tons. Bolivia has estimated 9 million tons in reserve. That will ensure the production of batteries for electric vehicles for many years and lead to a significant emission reduced transport sector.

A minimum quote, as German chancellor candidate Martin Schulz claims, is the wrong signal. Subsidies, which are well known by diesel fuel, are unrewarding and belongs to antiquated concepts. It´s much more reasonable to cut the diesel subsidies and use that money to invest into the charging infrastructure, because the electric vehicles are getting better and cheaper and own enough advantages to convince the market.

The European market of carbon emissions was pillowed by the still reduced auction volume and the higher percentage demand. That has led to a moderate increase of four Cent to 5.34 Euro per ton.

 

(Average Quotes Exchange / OTC)
Instrument	2017-08-11	2017-08-04	Change
EUA (Spotmarket)	5.38 EUR	5.34 EUR	+0.04 EUR
EUA (December-2017-Future)	5.39 EUR	5.35 EUR	+0.04 EUR
CER (Spotmarket)	0.21 EUR	0.21 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	52.03 USD	52.38 USD	-0.35 USD
EURO (Currency, Forex)	1.1772 USD	1.1774 USD	-0.0002 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 have 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. These 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 Ladies and Gentlemen,

Last week, a small, but nevertheless historical piece of news came from the carbon market. During the first year’s summer auction with a halved auction volume, a trader set an expensive record last Tuesday. With his bid of 5.60 EUR he had given the highest bid of the day. As far as nothing historical. However, he bid for the entire auction volume and this combination led to the fatal result that he was the only one to win the bid and thus had bought 2,131,500 EUAs at a price 34 cents higher than he could have done on the spot market.

The price for the December future then automatically rose, but only up to 5.38 EUR. The traders had understood the situation quickly, of course, and the technical rise in prices then also quickly reverted. Apart from this presumed unintentional spectacular deal, the carbon market in the past week was typical for the summer period with low sales and low volatility.

A small, but in this case absolutely not historical piece of news was reported from the so-called “Diesel summit”. But is there anything at all to report? Was the result not already fixed in advance? If we look at this result in relation to the efforts, we see below the line nothing than a very negative carbon footprint. Instead of burdening the environment for the trips to Berlin, the result could have been achieved much more simply and inexpensively. For example: The German Environmental Minister Barbara Hendricks writes a strongly-worded e-mail to the Minister of Transport Alexander Dobrindt. He reads the mail, but then writes its own version to the car-makers. Unfortunately, his e-mail accidentally lands in the spam folder. The car makers send instead the already prepared note to the media. The result would have been the same, but nobody would have to drive a single kilometer, nor had been wasted a single piece of paper.

 

(Average Quotes Exchange / OTC)
Instrument	2017-08-04	2017-07-28	Change
EUA (Spotmarket)	5.34 EUR	5.17 EUR	+0.17 EUR
EUA (December-2017-Future)	5.35 EUR	5.18 EUR	+0.17 EUR
CER (Spotmarket)	0.21 EUR	0.20 EUR	+0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	52.38 USD	52.19 USD	+0.19 USD
EURO (Currency, Forex)	1.1774 USD	1.1752 USD	+0.0022 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 have 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. These 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 Ladies and Gentlemen,

In the known yo-yo effect, which is feared by not a few people, a reduction diet results first in the desired fat and weight loss. The energy stores in the body are activated, which makes the view on the scale and in the mirror additionally pleasing. But the lack of food also leads to an energy saving program in the muscles. This “emergency operation” remains active even after the person has resumed their usual eating. However, the fat stores are quickly replenished and not infrequently one has more pounds on the scale than before the diet.

The global oil market has been facing a similar dilemma for several years. In order to achieve the desired prices on the market, the OPEC, together with other countries, prescribe themselves a diet for the production output. But as soon as the price reaches a level above the $ 50 mark, the relative expensive fracking method in the US is worthwhile and the stocks are filled so well that the price drops again just as quickly as it rose before.

At the beginning of last week, OPEC and Russia representatives met again to discuss more effective measures, and the oil price actually rose again to over USD 52.00. But this time, too, the yo-yo effect will not fail to appear. In a diet, you can curb the effect when regular exercise is added. With the oil price, however, we will still be looking for a suitable solution for quite a long time.

The carbon market has benefited from the oil rally last week and has clearly ended its last downward course. With an average price cut of around 25 cents in relation to the previous week, the price moved more or less sideways, but made up ground shortly before settlement on Friday.

The new trading week starts today with a promising auction result of 5.23 EUR and changes from tomorrow to the summer mode with halved auctions.

 

(Average Quotes Exchange / OTC)
Instrument	2017-07-28	2017-07-21	Change
EUA (Spotmarket)	5.17 EUR	5.08 EUR	+0.09 EUR
EUA (December-2017-Future)	5.18 EUR	5.09 EUR	+0.09 EUR
CER (Spotmarket)	0.20 EUR	0.21 EUR	-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	52.19 USD	47.98 USD	+4.21 USD
EURO (Currency, Forex)	1.1752 USD	1.1661 USD	+0.0091 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 have 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. These 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 Ladies and Gentlemen,

With the start into the past trading week, the carbon market has interrupted its soaring flight, which started in mid-May. The price with it tested the rising support line just above the five-euro mark. In the past two months, the price had increased by around 1.35 EUR, so that the current correction fits well into the landscape. If, however, the price won’t find stable ground this week, a breakthrough down could consume a lot of the gained terrain. However, in the case that the support holds, a further, clear price increase is even possible in the direction of EUR 6.00.

Consumers, politics and the judiciary kept their breaths when it became known that the German car-makers had appeared regularly and organized illegal agreements in all possible areas since the 1990s. This incomparable car cartel of course was to the detriment of the suppliers, competitors and buyers, but also at the expense of environmental and climate protection. A connection to the Diesel affair is likely. Instead of undertaking joint efforts to develop truly environmental-friendly technologies, the leadership of the German car industry out of sheer greed has completely gone into a legal vacuum. In fact, they are at the same moral level as a Donald Trump, who has denounced the Paris agreement in favor of the US coal industry. Even if you want to hypothetically assume that global warming is not caused by man, this behavior reminds one strongly of the impudent gapers in accidents. Instead of making any meaningful contribution to the rescue of the injured, they only satisfy their banal greed and hinder the rescuers. Even if the accident was not caused by them, it is at least in any case a failure to render assistance. And this is also true for the climate change, as it is pretty irrelevant, who or what it caused. It’s just about doing something.

 

(Average Quotes Exchange / OTC)
Instrument	2017-07-21	2017-07-14	Change
EUA (Spotmarket)	5.08 EUR	5.41 EUR	-0.33 EUR
EUA (December-2017-Future)	5.09 EUR	5.42 EUR	-0.33 EUR
CER (Spotmarket)	0.21 EUR	0.21 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	47.98 USD	48.99 USD	-1.01 USD
EURO (Currency, Forex)	1.1661 USD	1.1469 USD	+0.0192 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 have 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. These 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 Ladies and Gentlemen,

The French President, Emmanuel Macron, was after the meeting in Paris optimistic, that US-President Donald Trump could stand again behind the Paris climate deal from 2015. He said to the weekly Journal du Dimanche, “Trump was listen to me. He said, that he will find a solution in the upcoming months.” Macron continued, that both Presidents was talking about the circumstances, how the United States of America could return to the Paris agreement. Macron explained, that Trump has understood the relations between global warming and terrorism.

This wouldn´t been the first change of direction from the US-President, but in the face of nearly four times more jobs in the renewable energy sector towards the coal industry, it would be possible, that Trump could see these numbers.

On August 1^st, 2017 the reduced auction volume during the summer holiday period, which is nearly halved, the stronger crude oil prices and the sustainable breakthrough of important chart resistances made the European Emission Allowances EUA stronger once again for 8 Cents on weekly basis. The EUA closed last week by 5.41 Euro per ton. If the market environment remains positive, a renewed plunge below the 5-Euro-Level should remain undone next days.

 

(Average Quotes Exchange / OTC)
Instrument	2017-07-14	2017-07-07	Change
EUA (Spotmarket)	5.41 EUR	5.33 EUR	+0.08 EUR
EUA (December-2017-Future)	5.42 EUR	5.34 EUR	+0.08 EUR
CER (Spotmarket)	0.21 EUR	0.21 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	48.99 USD	46.79 USD	-2.20 USD
EURO (Currency, Forex)	1.1469 USD	1.1402 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 have 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. These 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