Innovate4Climate 2018

Casiana Fometescu, international consultant on CO2 issues from Carbon Expert has attended Innovate4Climate conference, which took place last week in Frankfurt, on 22-24 May 2018 in Kap Europa Congress Centre.

This year, Innovate4Climate has been the place where finance, business, technology, and policy leaders met to drive climate investment in future carbon low technology.

Climate action at unprecedented speed and scale is essential for making the investments required to avoid the effects of a 2 degree warmer world and meet the Paris climate commitments. In a world of constrained public resources, traditional forms of concessional finance will not be sufficient to fund the investment required for a transition to a low-carbon future. Scaling up and accelerating access to finance – from multiple sources, as efficiently and effectively as possible – to redirect the trillions of dollars sitting in unproductive, low yielding as well as unsustainable investments towards longer-term, climate-smart investments will be key.

Innovate4Climate 2018 has convened global leaders from industry, government and multi-lateral agencies for a one-day high level Summit, and two days workshops and a Marketplace, to work and dialogue on development of innovative financing instruments and approaches to support low-carbon, climate-resilient development pathways; mobilization of private investments in climate action; support to developing countries in their NDCs implementation; development of ideas on how market-based and non-market based climate finance instruments identified in the Paris Agreement can best be designed to maximize impact and minimize costs.

For more information on how to calculate and reduce the company’s carbon footprint and get funding for your investment plan in technologies that increase the company’s energy efficiency, please contact us. Also, if your project already involves a significant reduction in CO2 emissions in the atmosphere, we can help you get carbon credits for these CO2 emission reductions.


Leave a Comment (0) →

The Carbon Market 24.05.2018

CO2 emissions covered under the EU ETS rose by 0.3% in 2017, according to EU ETS verified data for 2017 published by the European Commission on 19th May 2018, confirming the small increase both reported in preliminary data released in April and predicted by analysts.

An increase had been widely forecast due mainly to increased coal generation as nuclear plants suffered reliability problems and hydro generation was very low in many parts of Europe. Yet, carbon price has risen almost double since the start of 2018 while oil, power, and natural gas are all 20% higher than they were at the beginning of 2018.

While the EU compliance was reaching its climax, the speculative trades continued to support the European carbon market, betting on higher prices in the coming months. April’s open interest in call options for December 2018 EUAs has risen to 207 million tones CO2, while put options show a total of 139 million tones CO2.

Analysts in mid-April raised their price forecasts for 2018 by around 30%, especially because of this speculative element of the CO2 market, which continues in May, as well.

Yesterday, 23.05.2018, EUA closed up at Eur 16.01, the highest level since 2011, after a long steady recovery. This consolidation may give traders encouragement to add length, and given the scale of recent price moves, this may bring more rise of the price into play.

At the same time, on 15th May 2018, the European Commission published the Total Number of Allowances in Circulation into the EU ETS (TNAC), which amounts to 1,654,574,598 allowances.

This means that between 1 January 2019 and 31 August 2019 264,731,936 allowances will be withheld from EU ETS auctions and placed in the Market Stability Reserve (MSR). This represents 16% of the TNAC over this 8 month period.

When the MSR starts operating in 2019, it will absorb each year 24% of the allowances in circulation if this figure is above 833 million allowances. From 2024 onwards the intake rate declines to 12%. The first review of the functioning of the MSR is scheduled to take place in 2021.

The Market Stability Reserve is another reason for the CO2 price increase together with the speculative trend.

Given these moves and forecasts, forward transactions we highly recommend Romanian installations to secure the price for the expected CO2 trades. This means that the price is locked up at the current level while payment is done at an agreed future time, possibly closed to the next surrender.

The Italian company, Aither CO2 has entered for the first time, this year, into Romanian carbon market, helped by the Romanian consultancy Carbon Expert. They won both tenders at BRM exchange as well as state and private company tenders, with revenue on the Romanian CO2 market of more than 12 milion Euro.

We are looking forward to seeing your interest in forward transactions due to the current risen trend of the EUA price.

Leave a Comment (0) →

The Carbon Market 02.05.2018

The ICE exchange from London trades today as follows:

EUA spot: € 13.14
EUA Dec ’18 futures: € 13.16
CER Dec’18 futures: € 0.20

Brent Crude futures Dec’18: $ 70.59

German energy Aug’18: € 43.72

According to Carbon Tracker report below, the price of the EUA certificate continues to rise as a result of the implementation of the European legislation regarding the Market Stability Reserve: 20 Euro/tCO2 in 2019 and 25-30 Euro/tCO2 in 2020-2021.

Screen Shot 2018-05-02 at 12.09.32

Source: Carbon Tracker, April 2018

Leave a Comment (0) →

The Carbon Market 10.04.2018

The ICE exchange from London trades today as follows:

EUA spot: € 13.43
EUA Dec ’18 futures: € 13.38
CER Dec’18 futures: € 0.20

Brent Crude futures Sept’18: $ 70.09

German energy spot: € 36.06

The price of the EUA certificate continues to rise as a result of the increasing demand for certificates required for compliance in 2017. At this time, the EUA certificate is traded at 13.43 Euro / EUA. The upward trend in this year’s EUA price can be seen in the chart below.

Carbon Expert awaits your trading requests to meet compliance targets, as well as other transactions that will streamline CO2 reduction activities (loan, CO2 portfolio management).

Screen Shot 2018-04-10 at 15.31.28

Source: ICE ECX London

Leave a Comment (0) →

The Carbon Market 07.03.2018

In February, Carbon Expert through Casiana Fometescu represented the Italian company AitherCO2 in the tender organized by Electrocentrale Bucharest (ELCEN) for “The acquisition of 1,300,000 greenhouse gas emissions certificates for compliance”, and AitherCO2 was declared the winner of the auction.

Carbon Expert and AitherCO2 inform you about the most important issues and recent European standards that you need to consider in order to plan the CO2 exposure in the next period and invite you to submit us your trading requests.

EU-ETS Reform 2021-2030

Last week, the EU nations finally signed off on the comprehensive post-2020 EU ETS reform package.  The most important changes that will affect the EU-ETS directly are the followings:

  •  The cap will decrease of 2.2% rate per year, compared to the current level of 1.74% in linear reduction factor, which means less free allocation for installations;
  • The Market Stability Reserve (MSR) will double to 24% of permits in circulation over a 5 year period; starting from 2023 the allowances held in the reserve above the total number of allowances auctioned during the previous year would be cancelled; this means few carbon certificates on the market, and consequently increase in the EUA price;
  • Any excess allowances held in the registry from this phase 3 (2013-2020) will be eligible to be used in the next one. But nowhere it is stated that EUAs from phase 4 free allocation will be eligible for the 2020 compliance (the last compliance from phase 3). This means that it is possible that companies need to buy more EUAs as initially planned for compliance 2020;
  • Starting from 2020, CERs will not be eligible for compliance purposes under EUETS.

The use of CERs/ERUs

It is important to take into consideration the possibility to use of CERs/ERUs for compliance in the current phase 3:

  • The use of CERs/ERUs in phase 3, for companies that were in the EU-ETS before 2013, is possible for an amount of CERs equal to the 11% of the whole amount of Verified Emission from 2008-2012;
  • For companies that enter the EU-ETS starting from 2013, an yearly amount of CERs/ERUs equal to the 4,5% of the verified emission of that year can be converted into EUAs.

On Monday, EUAs climbed to a fresh six-year high as bullish sentiment grew after one of the strongest auctions of the year and as EU ministers gathered to discuss carbon price floor options. Ministers from six EU nations met in Brussels on Monday, 05.03.2018 to discuss further initiatives, aimed at bolstering European carbon prices, but stopped short of launching a coalition to form an EU price floor.

All this updates are driving a positive trend in market prices for the EUA benchmark contract that is now trading above 10,43 Euro/EUA.

For any further questions related to your greenhouse gase emissions needs, please don’t hesitate to contact us.

Leave a Comment (0) →

The CO2 Market – 23.01.2018

International CO2 market – 2018 estimated achievements

  • The final, largely procedural votes on the EU ETS revisions will be taken in the European Parliament and the Council, and we will turn attention to the implementing regulations.
  • Analysts polled by Carbon Pulse have raised their near-term forecasts for EU carbon by as much as 10%, with most predicting that front-year EUAs would finish this year near or above €10 but keeping a cautious tone for prices in early 2018.
  • Canada will advance its pan-Canadian approach to carbon pricing, after the government released its long-awaited draft federal backstop legislation and its output-based pricing system regulatory framework earlier this month.
  • California’s regulators will begin the formal process to amend the state’s post-2020 cap-and-trade regulation and finalize it late this year, while neighbors in Oregon and Washington consider carbon pricing legislation.
  • RGGI states (Regional Greenhouse Gas Initiative – Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont) from the U.S. will vote on legislation / regulations to implement reforms agreed last year, and Virginia and New Jersey will decide whether and when to join RGGI.
  • China will add more operational details to its ETS, enabling the market to begin to function.
  • South Korea will consider strengthening its ETS to better assure results for its NDC.
  • ICAO (International Civil Aviation Organization) will adopt final Standards and Recommended Practices (SARPs) that will govern national implementation of CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation).
  • The UNFCCC will agree on the Paris Rulebook, including rules for Article 6.

Source: IETA, Geneva and Carbon Pulse, London


Leave a Comment (0) →

UNFCCC COP23 Bonn Results

Casiana Fometescu from Carbon Expert participated to the annual United Nations Framework Convention on Climpate Change COP23, which was held between 6 – 17 November in Bonn, and gathered over 28,000 participants from all over the world, from high state officials to NGOs and businesses. Casiana COP23 2017 Bonn

This year’s UNFCCC climate summit in Bonn was never going to be a high-profile world event like Paris in 2015. Climate diplomats came away from the French capital two years ago with a mandate to negotiate the rules that will underpin the Paris Agreement from 2020, and that process continues until next year.

However, this was the first Conference of the Parties to the UN Framework Convention on Climate Change since Donald Trump came to power in the United States, and the climate community was anxiously awaiting to see how the US would treat the remaining four years of its membership of the Paris treaty.

There were many key technical issues that needed to be progressed, ranging from finance to transparency to international carbon markets. The goal is to complete work on the “Paris rulebook” in time for next year’s COP24 in Katowice, Poland.

Outside of the technical negotiations, the main attraction was the United States. The team of career diplomats from the State Department arrived without fanfare and promised to engage with their colleagues in crafting rules for Paris despite the fact that as things stand, the US will not be a party by the time the new regime takes effect.

On the sidelines of the talks, a group of high-profile American politicians and businessmen, including California governor Jerry Brown and media mogul Michael Bloomberg, headed an alternative US delegation, which highlighted that the lack of federal climate policy is dwarfed by the amount of action taking place at a sub-national level.

One of the main headlines: the UK and Canada announced an alliance of 20 nations that are committed to phasing out coal as a power fuel. The group said it hopes to have 50 member states by next year’s meeting.

And while coal has already been under attack for some time, Norway took things a step further. The country’s central bank said it will recommend to the government that the Norwegian sovereign wealth fund – the world’s biggest – should divest from oil and gas companies.

But half-way through the two-week conference, scientists from the Global Carbon Project cast a pall over the meeting when they reported that emissions would likely rise in 2017, after three years of little change.

Within the negotiations themselves, the main goals included establishing a system for countries to be able to share and analyze their progress towards decarbonization. This transparency mechanism would also apply to the financial contributions that developed countries have committed to making to the most vulnerable nations.

In Bonn, rich countries managed to resist efforts calling for a fuller account of their contributions while in turn, developing countries blocked calls for them to provide greater detail on their emissions reductions. Talks on transparency will resume next year.

There were also proposals that wealthy nations should do more in the run-up to the start of the Paris Agreement in 2020. Part of this involves greater adherence to goals set up under the Doha Amendment, which extends the Kyoto Protocol to 2020. Countries agreed to set up special sessions next year to review interim progress on reductions and on climate finance.

The controversial proposal for compensation for climate effects – known as “loss and damage” – also reappeared, but met with continued resistance from the richer nations. However, the meeting did agree to further talks.

All in all, Bonn represented a step forward on the path to a Paris rulebook, most observers agreed. However, there is much to do. On carbon markets, for example, there was very little obvious advance: negotiators exchanged ideas on potential rules, but the proposals for a final text quickly grew out of control and must be slimmed down dramatically by next December.

Source: Carbon Expert and Allcot Group

Leave a Comment (0) →

The Carbon Market – 05.10.2017

The ICE exchange from London trades today, 05.10.2017, CO2 certificates and Brent Crude as follows:

  • EUA spot:  € 6.91
  • EUA Dec ’17 futures: € 6.92
  • CER daily futures: € 0.20
  • Brent Crude futures Dec’17: $ 56.21

The European CO2 Market EU ETS

The third quarter 2017 European Emission Allowances EUA closed with an increase of more than 40% against the previous quarter. Also from point of view of the first nine months, the pollution rights rose around 8%.

A important reason therefor could be the upcoming negotiations of the European Member states, which will review their position on the EU-ETS reform plans on Friday this week. Than they will discuss the proposal of cancellation of emission rights from the market stability reserve starting in 2023.

The previous proposal did not mention a cancellation, what could lead to the fact, that they could return into the market, if there was a surplus of less than 433 million units. The European Parliament also supports the cancellation of 800 million units after January 1st, 2021.

EU carbon prices are set to more than double to €15-20 by 2019-20 as utilities up their hedging, curbing supply just as the MSR starts sucking up hundreds of millions of allowances, a Barclays analyst said.

Source: Barclays, London

Leave a Comment (0) →

The CO2 Market – 25.09.2017

The ICE exchange from London trades today, 25.09.2017, CO2 certificates and Brent Crude as follows:

  • EUA spot:  € 6.64
  • EUA Dec ’17 futures: € 6.65
  • CER spot: € 0.20
  • Brent Crude futures Dec’17: $ 56.81

The European Climate Policy

Germany has become a key player in international climate politics in recent years, yet it is falling behind its domestic carbon targets. Angela Merkel is likely to need one or two coalition partners from the five other parties expected to enter the Bundestag. This means the next government’s priorities will have to be negotiated post-election and may not reflect individual party positions.

While the election outcome is unlikely to alter its global positioning, future government policy will likely affect its national climate progress.

The market of European emission allowances reacts positive and showed a small plus on Monday morning. Last week on the other hand, the EUA market was bearish in the second half on swinging trading sessions, what was caused not least by weaker German power prices.

At the same time, ETS company mergers are on track: Germany’s ThyssenKrupp and India’s Tata Steel have agreed to merge their European operations to create the bloc’s number two steel producer and one of the biggest emitting companies in the EU ETS.

To read more on the German climate policy, please click here.

Leave a Comment (0) →

The Carbon Market – 27.07.2017

The ICE exchange from London trades today, 27.07.2017, CO2 certificates and Brent Crude as follows:

  • EUA spot:  € 5.10
  • EUA Dec ’17 futures: € 5.19
  • CER daily futures: € 0.23
  • Brent Crude futures Sept’17: $ 50.83

The European CO2 Market

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.

Source: Advantag Brokerage Gmbh., Germany

Leave a Comment (0) →
Page 1 of 9 12345...»
CO2 Calculator