The CO2 Market – 14.04.2017
The ICE exchange from London open today, 14.04.2017, its CO2 tradings and Brent Crude as follows:
- EUA spot: € 4.97
- EUA Dec ’17 futures: € 4.96
- CER daily futures: € 0.27
- Brent Crude futures May’17: $ 55.64
The Carbon Market – 29.03.2017
The ICE exchange from London closed yesterday, 28.03.2017, its CO2 tradings and Brent Crude as follows:
- EUA spot: € 4.72
- EUA Dec ’17 futures: € 4.73
- CER daily futures: € 0.27
- Brent Crude futures May’17: $ 51.65
The EU ETS Reform
Last month, the European Parliament approved the environment committee’s (ENVI) package with several key modifications:
- The Linear Reduction Factor (LRF), the rate at which the cap shrinks each year, will be increased from the current 1.74% to 2.2% rather than ENVI’s proposed 2.4%;
- The Market Stability Reserve will withdraw 24% of the surplus in the market for the first four years of its operation from 2019, rather than 12%; and
- Airlines will see their free allocations cut by 10% from 2021.
At the same time, the Commission proposed to continue with the current geographic scope of the EU Emissions Trading System for aviation, covering only flights between airports in the European Economic Area (intra-EU flights) – de facto meaning an extension of the ‘stop the clock’ provision.
For English, please press here.
Source: European Commission, Brussels and IETA, Geneva
The CO2 and Energy Market – 14.02.2017
A little more exciting than in the past few weeks, it could soon become in the European carbon market. Although there are no significant external influences, the CO2 chart is actually moving towards a decision. Since the beginning of 2017, the price has only moved sideways, but the range lately is getting smaller and smaller.
There must therefore be an outbreak in the near future, but still unknown, in which direction. It is interesting to note that the most important energy indices, namely oil, gas, electricity and coal, have a nearly identical chart situation.
In the opinion of market observers, therefore, a quite significant price change could be imminent.
The ICE exchange from London currently trades CO2 credits and Brent Crude as follows:
- EUA spot: € 5.02
- EUA Dec ’17 futures: € 5.03
- CER daily futures: € 0.28
- Brent Crude futures May’17: $ 56.43
Source: Advantag Brokerage Gmbh, Germany
The CO2 and Energy Market 09.02.2017
The ICE exchange from London currently trades CO2 credits and Brent Crude as follows:
- EUA spot: € 5.35
- EUA Dec ’17 futures: € 5.32
- CER daily futures: € 0.28
- Brent Crude futures Apr’17: $ 56.010
Green Energy News
The new report “Expect the Unexpected: The Disruptive Power of Low-carbon Technology”, launched last week by Carbon Tracker and the Grantham Institute at Imperial College London, highlights that falling costs of electric vehicle and solar technology could halt growth in demand for oil and coal from 2020.
The report challenges the business as usual approach of companies and finds that:
• EVs could make up a third of the road transport market by 2035, half by 2040 and two thirds by 2050 with 1.7 billion vehicles on the road;
• Growth in EVs could displace 2 million barrels of oil a day by 2025, the same volume that caused the oil price collapse in 2014-15. By 2040 they could displace 16mbd of oil;
• Solar PV could supply 23% of global power generation in 2040 and 29% by 2050, entirely phasing out coal and leaving gas with a 1% market share.
Source: Grantham Institute at Imperial College, London
The Carbon Market 23.01.2017
Dear Partners,
May you have a new year 2017 full of hopes, peace, and accomplishments at all levels, personally and professionally!
The ICE exchange from London currently trades its CO2 operations and Brent Crude as follows:
- EUA spot: € 5.42
- EUA Dec ’17 futures: € 5.43
- CER daily futures: € 0.28
- Brent Crude futures Apr’17: $ 55.44
EU ETS News
The European Parliament’s ENVI Committee, the Committee responsible for Environment, Public Health and Food Safety, adopted on Thursday, 15 December, its opinion on the revision of the EU ETS for Phase 4.
The key outcomes of the ENVI opinion on the revision of the EU ETS Phase 4 are:
- Linear Reduction Factor: The Linear Reduction Factor should be increased to 2.4% in Phase 4
- Stronger MSR: A proposal to double the MSR intake rate for the first 4 years is part of the Compromise Amendments
- Allowances Cancellation: A proposal to cancel 800 million allowances from the MSR in 2012 was adopted
- Auctioning share: The auctioning share can be reduced by up to 5% in order to avoid the application of the Cross Sectoral Correction Factor.
- Carbon Leakage Provisions: The Commission’s binary system is maintained. ENVI’s opinion also include a provision for the establishment of a border carbon adjustment measure for importers of certain goods.
What’s next?
The ENVI Opinion will be tabled for a vote in Plenary, so that Parliament can adopt its position before starting trilogue negotiations (between the Commission, the Parliament and the Council). ENVI President La Via did not provide an indication on when the Plenary vote will take place. Nevertheless, it is expected to take place in January or February 2017. If the process is not delayed, Trilogues will start in the first half of 2017 and are likely continue into the second half of 2017, depending on when trilogue negotiations actually start and on how divergent the three positions are.
Source: ENVI Committee, The European Parliament
The European CO2 Market 18.01.2017
The ICE exchange from London currently trades its CO2 operations and Brent Crude as follows:
- EUA spot: € 4.89
- EUA Dec ’16 futures: € 4.89
- CER daily futures: € 0.29
- Brent Crude futures Apr’17: $ 55.28
The CO2 Market – 20.10.2016
The ICE exchange from London currently trades its CO2 operations and Brent Crude as follows:
- EUA spot: € 5.68
- EUA Dec ’16 futures: € 5.72
- CER daily futures: € 0.40
- Brent Crude futures Dec’16: $ 51.88
Climate Change News
Casiana Fometescu was invited by Allcot Group to participate this week ( 18-19.10.2016 ) at the Climate Change Conference in Paris, organized by IETA, IEA, and OECD.
Conference participants, coming from both the public sector, especially public technocrats (United Nations, European Commission, EPA – the US Environmental Protection Agency), and the private sector (industries, trading companies, universities) openly discussed current and future trends on the achievement of internationally climate change targets, and current systems existing in the main developed countries (EU, US, Canada, Japan).
The main topics discussed:
- Paris Agreement: international trading to achieve and surpass NDCs (National Determined Contributions of parties)
- Carbon markets in Asia – Pacific
- The EU ETS scheme – current challenges and future opportunities
- Aviation: news on the global trading scheme recently approved by ICAO
- Evolution of the carbon market in North America (USA and Canada)
- Linkages and carbon clubs
For more information about these topics, we are please to answer your questions.
Source: 16th Annual Workshop IETA IEA EPRI on GHG Emissions Trading, OECD Paris
The CO2 market – 13.10.2016
The ICE exchange from London currently trades its CO2 operations and Brent Crude as follows:
- EUA spot: € 5.58
- EUA Dec ’16 futures: € 5.64
- CER daily futures: € 0.40
- Brent Crude futures Ian’17: $ 52.55
Climate Change News
In a momentous decision last Thursday, 6th October 2016, the International Civil Aviation Organization (ICAO) Assembly passed a resolution to establish a Global Market-based Measure (GMBM) that will help the aviation sector meet its commitment to carbon-neutral growth starting in 2021. This resolution also effectively creates a brand new market for high-quality carbon credits.
ICAO intends for the global aviation industry to achieve carbon neutral growth from 2020 by requiring participating aviation operators to offset any additional emissions above a 2020 baseline. The system will be voluntary from 2021 and mandatory from 2027.
Source: ICAO.int, Montreal
The Carbon Market 04.10.2016
The ICE exchange from London currently trades its CO2 operations and Brent Crude as follows:
- EUA spot: € 5.26
- EUA Dec ’16 futures: € 5.24
- CER daily futures: € 0.38
- Brent Crude futures Ian’17: $ 51.36
International Climate Change News
EU ministers have approved ratification of the Paris climate agreement, making it likely that the global greenhouse (GHG) emissions reduction deal will enter into force before the end of this year.
The unanimous decision paves the way for the European Parliament to give its consent for the deal, after which the Council of EU member states can formally adopt it. It will allow the EU to deposit its ratification instrument before each EU member state has completed its national ratification process.
So far, 61 countries, accounting for almost 48pc of global emissions have ratified the deal. The agreement will enter into force 30 days after at least 55 countries, representing at least 55pc of global emissions have ratified it. The EU accounts for around 13pc of global emissions.
Source: Argus Media, London
The Carbon Market 22.09.2016
The ICE exchange from London currently trades its CO2 operations and Brent Crude as follows:
- EUA spot: € 4.30
- EUA Dec ’16 futures: € 4.35
- CER daily futures: € 0.39
- Brent Crude futures ’16: $ 47.73
Climate Change
All new passenger vehicles sold by 2035 must not emit any CO2, if the world is to meet the Paris climate deal’s goal to limit the global temperature rise this century to 1.5°C, research group Climate Action Tracker (CAT) has said.
And even this could be too late to avoid the need for significant subsequent negative emissions, it said. A large-scale deployment of electric vehicles will have to be accompanied by power sector decarbonisation to ensure that the vehicles are truly emissions free, Cat said.
The Paris agreement sets targets to keep global warming “well below” 2˚C and “pursue efforts” to limit any increase in temperatures to 1.5˚C.
Source: Argus Media, London