The European CO2 Market 19.05.2015

The ICE exchange from London opened down its CO2 operations:

• EUA spot closed at € 7.53
• EUA Dec 15 futures closed at € 7.57
• CER Dec 15 futures closed at € 0.48
• Brent Crude spot: $ 65.49
• German Power Front Month (June 15): € 29.80

King of Spain tops the bill at this year’s Carbon Expo in Barcelona

Geneva, 18 May 2015: IETA is honoured to announce today that His Majesty King Felipe VI of Spain will be opening this year’s Carbon Expo trade fair and conference.

His Majesty King Felipe VI of Spain will speak at the opening plenary of the three-day event on 26 May in Barcelona at 11am CET.

Other high-level speakers at Carbon Expo 2015 include Christiana Figueres, UNFCCC executive secretary, Miguel Arias Cañete, the European Commissioner for Climate Action & Energy, Spain’s environment minister Isabel Garcia Tejerina, France’s Special Representative for the 2015 Paris Climate Conference and French Ambassador for Climate Negotiations Laurence Tubiana and World Bank vice-president Rachel Kyte.

More than 35 CEOs will also be present at the event, as well as several environment ministers and leading policymakers – making Carbon Expo the essential milestone on the road to the Paris climate agreement at the end of this year.

“As we enter the final months of negotiations for the Paris climate agreement, having a forum for discussion between business and government such as Carbon Expo is crucial, particularly with regards to market matters,” says IETA President and CEO Dirk Forrister. “The presence of His Majesty King Felipe VI is a sign of how high the importance of the global response to climate change has escalated.”

Carbon Expo 2015, organised jointly by IETA, the World Bank Group and Fira de Barcelona, features more than 220 speakers in nine plenary sessions and 27 workshops. Carbon Expo will also host 36 side events featuring the latest products and services for climate and carbon finance, including industry case studies, new reports and networking opportunities. The side events will be open to all participants.

Our consultant, Casiana Fometescu will be present at Carbon Expo Barcelona and will keep you posted on all relevant news about climate change.

For the full programme and to register, please see www.carbonexpo.com.

The European Carbon Market 14.05.2015

The ICE exchange from London opened up its CO2 operations:

• EUA spot closed at € 7.63
• EUA Dec 15 futures closed at € 7.67
• CER Dec 15 futures closed at € 0.46
• Brent Crude spot: $ 66.42
• German Power Front Month (June 15): € 29.68

The European CO2 Market EU ETS

The Reform of the Market stability reserve ( MSR ) was enforced yesterday, 13/05/2015 , by all EU countries, and legislative confirmation by the European Parliament was scheduled for the 07.06.2015 . Yesterday , price volatility was relatively low, at 25 cents, trading between 7.45 Euro/EUA and 7.70 Euro/EUA .

The price of carbon remains on an uptrend , Reuters Point Carbon analysts estimating a price increase of 9 EUR /certificate until the end of the year.

The European Carbon Market 06.05.2015

Carbon Expert welcomes the provisional agreement reached yesterday, 6 May 2015 by the European Parliament and the Council on the proposal to establish a Market Stability Reserve (MSR) under the EU Emissions Trading System (ETS).

A robust MSR which enters into operation early in 2019 ensures that the 900 million backloaded allowances as well as the unallocated allowances are transferred to the reserve.

The agreement on MSR effectively consists of the following outcomes:

• Start date: January 2019
• Backloaded allowances: 900 million allowances postponed from auction 2014-2016 to 2019-2020 will be placed in the MSR
• Unallocated allowances: to be placed in MSR in 2020; future usage will be considered under broader ETS review
• EU ETS and MSR review: to take into account carbon leakage and competitiveness aspects, as well employment and GDP related issues.

Adjustments to the long-term price outlook are already taking place and according to the team at Point Carbon, prices of EUAs of €12 in the coming year could rise by the end of that period up to €19. The analysts expect a price increase of up to €31 per certificate for the period until 2030.