Putting a Price on Carbon 2.09.2014

Carbon Expert is pleased to announce that our organization has recently expressed support for a high-profile effort led by the World Bank Group that calls on governments and business leaders to support a price on carbon.

By supporting the “Putting a price on Carbon” statement, we joined a growing coalition of leaders worldwide speaking out for action on climate change. We encourage you to join us and be counted as a supporter.

A carbon price provides a necessary signal for investment in low-carbon and resilient economic growth. Regardless of the mechanism used, carbon pricing needs to be part of any package of policies to scale up climate change mitigation. Carbon pricing also improves the efficiency of the economy, allowing for increased government investments or tax reductions in other areas. As you may know, without a price on carbon, getting the response needed across the private sector will be difficult.

Through the statement, governments and companies will jointly announce their support for a price on carbon at the UN Secretary-General’s Climate Summit on 23 September and encourage others to join.

To signal your support for the statement, please visit the World Bank Group website at:

http://www.worldbank.org/en/programs/pricing-carbon.

The Carbon Market 27.08.2014

The ICE exchange from London closed up its operations on August 27:

• EUA spot closed at € 6.33
• EUA DEC14 futures closed at € 6.39
• CER futures contract Dec14 closed at € 0.18
• Brent Crude Fronth Month trade at $ 102.2
• German Power Front Month trade at € 34.45

European Carbon Market

A lacklustre weak continues for CO2 prices, news that the ENVI committee agenda will not see CO2 market reform actively addressed before the end of September brought some weakness to EUA prices yesterday and again this morning. Auctions remain well bid, and the Dec 14 EUA remains within its current range, trading largely sideways. We continue to believe that CO2 prices can go up in the next month, though much will depend on political signals driving market sentiment toward the timing of the implementation of the MSR (Market Stability Reserve).

The Carbon Market

04.08.2014

The ICE exchage from London closed down its operations on August 4:

• EUA spot closed at € 6.18
• EUA DEC14 futures closed at € 6.26
• CER futures contract Dec14 closed at € 0.16
• Brent Crude Front Month closed at $ 105.08
• German Power Front Month closed at € 33.98

European Carbon Market

EU sets dates for resumption of aviation carbon permit sales

European Union member states will sell a total 9.3 million aviation carbon permits across five auctions starting in September. Romania will participate to the auctions together with other 24 EU states, but Germany and Poland will not auction this year.

This announcement comes after a near two-year hiatus of negotiations in ICAO (International Civil Aviation Organization) with no global agreement.

For more info, please click here.

Source: The European Commission, DG Clima

The Carbon Market

28.07.2014

The ICE exchage from London closed up its operations on July 28:

• EUA spot closed at € 6.17
• EUA DEC14 futures closed at € 6.22
• CER futures contract Dec14 closed at € 0.17
• Brent Crude Front Month closed at $ 107.67
• German Power Front Month closed at € 31.25

European Carbon Market

EUA prices also rallied on Friday afternoon, paid up on a rallying energy complex and decent sentiment, the Dec 14 traded up to €6.16, settling €6.15. The contract remains within its present range – strong support below/around €6.00 materialised on Friday, with gains toward €6.20 well resisted.

Summer auction volumes will be implemented at ICE and at EEX from the 1st August (Friday), this will see auction volumes halve. We believe that risk is to the upside, as reduced volumes raised the possibility of supply squeeze.

Source: The ICE/London, EEX/Leipzig, July 2014

The Carbon Market

16.07.2014

The ICE exchage from London closed up its operations on July 16:

• EUA spot closed at € 6,02
• EUA DEC14 futures closed at € 6,06
• CER futures contract Dec14 closed at € 0,15
• Brent Crude Front Month closed at $ 106,58
• German Power Front Month closed at € 30,05

European Carbon Market

Switzerland threatens 40 pct carbon tax rise if targets not met

Switzerland threatened on Monday to raise its tax on greenhouse gas output from the energy sector by 40 percent if companies do not meet government-imposed emissions reduction targets this year.

Source: Reuters, 15 July 2014

The Carbon Market

9.07.2014

The ICE exchage from London closed its operations on July 9:

• EUA spot closed at € 5,78
• EUA DEC14 futures closed at € 5,83
• CER futures contract Dec14 closed at € 0,15
• Brent Crude Front Month closed at $ 108,28
• German Power Front Month closed at € 29,60

European Carbon Market

Norway to buy 21 mln emission reductions for 48 mln euros

Norway will buy 21 million U.N.-backed certified emission reductions (CERs) for an average price of 2.28 euros each in its international tender to purchase carbon offsets, said the financial institution in charge of the deal on Monday.

Source: Reuters, 9 July 2014

The Carbon Market

23.06.2014

The carbon market closed down:

• EUA spot closed at € 5,75
• EUA DEC14 futures closed at € 5,79
• CER futures contract Dec14 closed at € 0,14
• Brent Crude Fronth Month trade at $ 114,37
• German Power Front Month trade at € 32,75

Volutary Market News

The International Federation of Association Football has pledged to offsets all direct emissions from the World Cup, estimated at 59,200 tones of carbon dioxide (tCO2), and Brazil has encouraged private companies to purchase and donate offsets to help reduce some of the 1.4 million tCO2e or so indirect emissions from the tournament, mainly caused by plane travel.

So far, 11 companies – including the Brazilian subsidiaries of Solvay S.A., ArcelorMitall, and Bunge Limited – have stepped up to the plate, purchasing 420,500 t CO2, covering about a third of the World Cup’s total emissions.

Source: EcoSystem Market Place, Washington, 2014

The Carbon Market

16.06.2014

The ICE exchage from London closed its operations on June 15:

• EUA spot closed at € 5,65
• EUA DEC14 futures closed at € 5,68
• CER futures contract Dec14 closed at € 0,14
• Brent Crude Front Month closed at $ 113,04
• German Power Front Month closed at € 32,77

European CO2 Prices

The EU emissions trading scheme allowance market reached a seven week high, on continuing expectations that the EU will implement a long-term fix for the market’s oversupply.
A German government announcement that the country will support an early implementation of the European Commission proposed market stability reserve helped strengthen the price of the last week and at the beginning of this week.
But many market participants remain skeptical that the EU will implement the market reserve as early as Germany’s preferred start day of 2017, having seen that the short term backloading supply fix took almost two years to pass through the EU legislative process.

Source: Argus Media, June 2014.

The Carbon Market

05.06.2014

The ICE exchange from London opened slightly down today, 5th June 14:

• EUA spot opened at € 5,39
• EUA DEC14 futures opened at € 5,44
• CER futures contract Dec14 opened at € 0,09
• Brent Crude Front Month trade at $ 108,13
• German Power Front Month trade at € 31,54

News from the Carbon Expo (Cologne, 28 – 30 May 2014)

The most important meeting on climate change in Europe and the European carbon market was opened on 28th May and closed its sessions on 30th May 2014. The first impression that we felt after a few years of participation at these events was that this time the conference was smaller compared to other years. Although the volumes traded on the carbon market have been expanding, their values have decreased, which had impact on the size of the event in Cologne .

One discussed issue in Cologne was the carbon price up-trend for the next period (including the end of 2014 ) until 2017 when EUAs will be re-introduced on the market at the end of the ” backloading ” process , which implementation started this year.

EUA price forecasts are slightly different. For example, please note the following values ​​predicted for the end of 2014 :

Reuters: 10 euro
The ICIS : 9 euros
Energy Aspects : 8 euros

The EU ETS Market

27.05.2014

The ICE exchage from London opened down today, May 14:

• EUA spot opened at € 5,24
• EUA DEC14 futures opened at € 5,19
• CER futures contract Dec14 opened at € 0,09
• Brent Crude Front Month trade at $ 110,35
• German Power Front Month trade at € 29,90

EU carbon permit surplus rose to over 2.1 bln allowances in 2013
The number of surplus carbon permits in the European Union’s flagship Emissions Trading System (ETS) swelled to over 2.1 billion allowances at the end of 2013 compared to 2.0 billion allowances in 2012 as emissions fell with 3% compared to the same year, the European Commission said.

For more details, please click here.

Source: The European Commission, May 2014