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

The Carbon Market

14.05.2014

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

• EUA spot opened at € 5,24
• EUA DEC14 futures opened at € 5,33
• CER futures contract Dec14 opened at € 0,13
• Brent Crude Front Month trade at $ 109,39
• German Power Front Month trade at € 29,35

The European Energy Market

13.05.2014

Britain to end solar power subsidy scheme early
Britain will end its subsides for new solar power plants two years earlier than expected to prevent costs from the scheme soaring, the government said on Tuesday.

Source: REUTERS, LONDON, May 13.

EU ETS – Market Stability Reserve

05.05.2014

The European Commission’s proposed framework for climate and energy policies for the 2020-2030 period includes a proposal to reform the EU ETS by establishing a Market Stability Reserve (MSR).
This reserve has two-stated objectives and a third, implied objective. It aims to address the surplus of allowances that has built up in recent years and to improve the system’s resilience to major demand shocks by automatically adjusting the quantity of allowances to be auctioned. It also has the potential to address the problem of uncoordinated policies at the European level.

Next Steps in terms of decision making and implementation of MSR

The Commission’s proposal goes now through the normal legislative process of co-decision in the European Union, which means that EU Member States and European politicians will evaluate the proposal, possibly modify, and then will negotiate an agreement to be implemented in the European legislation. We believe that the final agreement on the MSR can happen in 2016 or even 2017.

The Market Stability Reserve should be a permanent design change at the European Union greenhouse gas emissions trading system – EU ETS.

To see the EC legislative proposal on MSR, please click here.

The IPCC (UN Intergovernmental Panel on Climate Change) report

29.04.2014

The latest report by the United Nations scientific panel on climate change shows that collective and significant global action is needed to reduce greenhouse gas emissions in order to keep global warming below 2°C. The report from the Intergovernmental Panel on Climate Change (IPCC) says that the longer we wait, the more expensive and technologically challenging meeting this goal will be.

• Despite a growing number of climate change mitigation policies, man-made greenhouse gas emissions (GHG) grew more rapidly from 2000 to 2010 than in each of the previous three decades.
• The global economic crisis in 2007/2008 only temporarily reduced carbon emissions.
• Total emissions from 2000 to 2010 were the highest in human history. In 2010, total GHG emissions were around 49 gigatones of CO2-equivalent (around 7 tones of CO2-equivalent for every person on the planet).
• About half of the total carbon dioxide emissions emitted between 1750 and 2010 occurred over the last 40 years.

To access the report, please click here.

Source: The European Commission, DG Clima.

Carbon Market

25.04.2014

The ICE Emissions Market has opened operations today, 04/25/2014, as follows:

• EUA spot: 5,73 Euro
• EUA Futures December 2014: Euro 5.81
• CER Futures December 2014: Euro 0.16
• Brent Crude (oil) June 2014: $ 110.03
• Energy Germany June 2014: Euro 29.25

This morning, EUA price tumbled from 5.81 Euro to 5.50 Euro. The reason for this correction is technical rather than intrinsic, as determined by the intervention of traders who bought large quantities of EUAs, given low auctions next week and the potential military intervention of Russia in Ukraine, which may generate a price increase.



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