The Carbon Market 28.10.2015

The ICE exchange from London currently trades as follows:

• EUA spot:  € 8.61
• EUA Dec 15 futures: € 8.63
• CER Dec 15 futures closed: € 0.60
• Brent Crude spot: $ 46.76
• German Power Front Month (Nov. 15): € 34,68

Paris International Climate Change Agreement

If all countries meet the goals outlined in their pledges in the run up to the Paris Climate Summit, growth in energy-related emissions– which account for two-thirds of total greenhouse gas emissions –will slow to a relative crawl by 2030.

A Special Briefing was released this week by the International Energy Agency (IEA) on the energy sector implications of national climate pledges (known as Intended Nationally Determined Contributions or INDC’s) submitted for the upcoming climate summit in Paris (COP21).

“The fact that over 150 countries – representing 90% of global economic activity and nearly 90% of global energy-related greenhouse gas (GHG) emissions – have submitted pledges to reduce emissions is, in itself, remarkable,” said IEA Executive Director Fatih Birol.

“These pledges, together with the increasing engagement of the energy industry, are helping to build the necessary political momentum around the globe to seal a successful climate agreement in Paris”

Source: Globe Net, October 2015

The CO2 Market 12.10.2015

The ICE exchange from London currently trades as follows:

• EUA spot:  € 8.33
• EUA Dec 15 futures: € 8.35
• CER Dec 15 futures closed: € 0.61
• Brent Crude spot: $ 53.13
• German Power Front Month (Oct. 15): € 32,80

The European Carbon Market -EU ETS

At the end of a very calm and balanced week the price of carbon allowances on Friday, 09.10.2015, increased significantly by more than 20 cents on Monday. At the close of trading the December futures recorded a level of 8.35 euros, only two cents below the session high. The same settlement price posted the market last seven weeks before.

The market situation, however, in the coming months will not be dominated by the expected upsurge of political and editorial statements in the context of the World Climate Summit in Paris. Although the expected decisions might proof extremely important, they hardly will have any effect on the ETS. Only an absolutely disappointing outcome of the summit might also impact negatively on the price for the European allowances. Rather, it is assumed that with rising demand and lower willingness to sell current surplus of certificates, the price will continue to rise calmly.

In the wake of prices for EUAs also reduction certificates have risen considerably in the past few weeks. CER costs now almost 20 percent more than at the end of last month.

Source: Advantag Brokerage Gmbh., Germany