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.

The CO2 Market 15.04.2015

The ICE exchange from London opened down its CO2 operations:

• EUA spot closed at € 6.80
• EUA Dec 15 futures closed at € 6.83
• CER Dec 15 futures closed at € 0.52
• Brent Crude Front Month (April 15): $ 59.79
• German Power Front Month (April 15): € 28.85

The European CO2 Carbon Market

After a calm Easter break, the volume of EUAs traded last week was relatively low and only returned to the average level by Friday.

As trading volumes increased, so too did price fluctuations, with Friday also seeing the benchmark EUA Dec-15 closing below €7. The price correction continued on Monday and the benchmark lost a further €0.14 to close at €6.80, testing the strong support level of €6.75.  The week was marked by a lack of news about the MSR and the decline could be explained by this factor; as short positions were taken before the trilogue reconvenes in May.

The CO2 Market 31.03.2015

The ICE exchange from London opened down its CO2 operations:

• EUA spot closed at € 6.85
• EUA Dec 15 futures closed at € 6.88
• CER Dec 15 futures closed at € 0.42
• Brent Crude Front Month (April 15): $ 55.36
• German Power Front Month (April 15): € 31.25

The International Voluntary Carbon Market

The biggest conference in the region on the voluntary CO2 market will take place this April 2-4 in Turkey: Istanbul Carbon Summit. Since there is no legislation in the emission of greenhouse gases in Turkey, the voluntary carbon market remains the only altenatative for project developers in CO2 emission reductions and energy efficiency.

At the Gold Standard conference, Carbon Expert consultant, Casiana Fometescu, was invited to hold a presentation on “The International CO2 Voluntary Market – current state and prospects for the future”.

Gold Standard, with its headquarters in Switzerland, is the most important standard organization for certification of voluntary projects in the emission of greenhouse gases. It is recognized by the United Nations Framework Convention on Climate Change (UNFCCC) for its projects (over 1000 projects worldwide and over 35 million tons of CO2 saved from the atmosphere). Gold Standard reputation has been given by much higher prices for transacted certificates  (VER) compared to all other international standards (ie: the average GS price in 2013 was $9/tCO2 compared to the overall average of $5/tCO2).

After our participation in Istanbul, we will keep you informed about updates in the CO2 emissions field.

The Carbon Market 12.03.2015

The ICE exchange from London opened down its CO2 operations:

• EUA spot closed at € 6.69
• EUA Dec 15 futures closed at € 6.78
• CER Dec 15 futures closed at € 0.39
• Brent Crude Front Month (April 15): $ 57.97
• German Power Front Month (April 15): € 30.80

The European Carbon Market EU ETS

The EUA price has been remaining these days under 7 Euro, due to a reduced volume of transactions on the major European exchanges, the ICE London and EEX Leipzig, and rumors in the market regarding the granting of the new allocation, before the surrender in 30 April 2015, by the European Commission.

The last week proposal of the Latvian current president of the EU to have an operational MSR at 1st January 2019 also diminished the price.

The Carbon Market 24.02.2015

The ICE exchange from London opened down its CO2 operations:

• EUA spot closed at € 7,70
• EUA Dec 15 futures closed at € 7.82
• CER Dec 15 futures closed at € 0.40
• Brent Crude Front Month (April 15): $ 50.25
• German Power Front Month (April 15): € 32.40

The CO2 Market 16.02.2015

The ICE exchange from London closed up its CO2 operations:

• EUA spot closed at € 7.64
• EUA Dec 15 futures closed at € 7.71
• CER spot contract closed at € 0.03
• CER Dec 15 futures closed at € 0.40
• Brent Crude Front Month (March 15): $ 61.56
• German Power Front Month (March 15): € 32.35

The European Carbon Market EU ETS

The EUA price continued the upward trend of last week when the ENVI Committee of the European Parliament published the legislative proposal on the reform of the market. Soon after, the price surpassed the resistance level of  Eur 7.50, as a result of increased demand for certificates. Today trading session on the ICE see the EUA Dec. ’15 futures contract at highs of Eur 7.73.

We expect prices to rise in the next period, with the milestone date is 28.02.2015 in which it will be decided the MSR – Market Stability Reserve.

Source: ECX ICE, London

The Carbon Market 12.02.2015

The ICE exchange from London opened up its operations:

• EUA spot opened at € 7.28
• EUA Dec 15 futures opened at € 7.35
• CER spot contract opened at € 0.03
• Brent Crude Front Month (March 2015) trades at $ 55.73
• German Power Front Month trades (March 2015) at € 31.70

The International Carbon Market

China will launch in 2016 a national scheme for greenhouse gas emissions, which will be fully functional in 2019.

According to a Chinese official, Jiang Zhaoli, the carbon market in China will include six sectors of activity: steel, energy, nonferrous metals, chemicals, building materials and aviation, including companies in these areas with an yearly production of at least 26,000 t CO2.

Currently, China has in operation seven regional CO2 pilot system.

Source: Eco News

The CO2 Emissions Market 03.02.2015

The ICE exchange from London opened down its operations:

• EUA spot opened at € 7.08
• EUA Dec 15 futures opened at € 7.22
• CER spot contract opened at € 0.03
• Brent Crude Front Month trade at $ 55.00
• German Power Front Month trade at € 31.70

The European Carbon Market EU ETS

Last week, ECOFYS published some data on the European carbon market – EU ETS. According to Ecofys, at the end of the third phase of the ETS (2020), the market will have a surplus of 500-900 million allowances, as a result of free allocation to industry in the previous period, especially from 2008 to 2012, the regulations regarding the process of “back-loading” and the new entrants reserve NER.

Source: Ecofys, UK

The Carbon Market 29.01.2015

The ICE exchange from London opened up its operations:

• EUA spot opened at € 7.00
• EUA Dec 15 futures opened at € 7.06
• CER futures contract Dec 15 opened at € 0.43
• Brent Crude Front Month trade at $ 48.69
• German Power Front Month trade at € 35.50

The European Carbon Market EU ETS

Last week, EUA price fell by about 60 cents in one day, due to lack of opinion of the ITRE Committee from the European Parliament related to the MSR (Market Stability Reserve).

Although opinions differ, we believe that the ambiguous result from the ITRE Committee can be positively interpreted because the decision on MSR will remain to the ENVI Committee of the EP, through the vote scheduled on 24^th February. At this time, ENVI members of the Parliament support an early implementation of the MSR, in 2017.

Please note that the MSR  refers to the withdrawal from the market of 900 million EUAs to remain in this reserve. Basically, the allowances that come on the market in 2017 as a result of the “back-loading” process, will go directly into this reserve, without affecting the increasing of the supply of CO2 certificates on the EU ETS market.