The Carbon Market

28.07.2014

The ICE exchage from London closed up its operations on July 28:

• EUA spot closed at € 6.17
• EUA DEC14 futures closed at € 6.22
• CER futures contract Dec14 closed at € 0.17
• Brent Crude Front Month closed at $ 107.67
• German Power Front Month closed at € 31.25

European Carbon Market

EUA prices also rallied on Friday afternoon, paid up on a rallying energy complex and decent sentiment, the Dec 14 traded up to €6.16, settling €6.15. The contract remains within its present range – strong support below/around €6.00 materialised on Friday, with gains toward €6.20 well resisted.

Summer auction volumes will be implemented at ICE and at EEX from the 1st August (Friday), this will see auction volumes halve. We believe that risk is to the upside, as reduced volumes raised the possibility of supply squeeze.

Source: The ICE/London, EEX/Leipzig, July 2014

The Carbon Market

16.07.2014

The ICE exchage from London closed up its operations on July 16:

• EUA spot closed at € 6,02
• EUA DEC14 futures closed at € 6,06
• CER futures contract Dec14 closed at € 0,15
• Brent Crude Front Month closed at $ 106,58
• German Power Front Month closed at € 30,05

European Carbon Market

Switzerland threatens 40 pct carbon tax rise if targets not met

Switzerland threatened on Monday to raise its tax on greenhouse gas output from the energy sector by 40 percent if companies do not meet government-imposed emissions reduction targets this year.

Source: Reuters, 15 July 2014

The Carbon Market

9.07.2014

The ICE exchage from London closed its operations on July 9:

• EUA spot closed at € 5,78
• EUA DEC14 futures closed at € 5,83
• CER futures contract Dec14 closed at € 0,15
• Brent Crude Front Month closed at $ 108,28
• German Power Front Month closed at € 29,60

European Carbon Market

Norway to buy 21 mln emission reductions for 48 mln euros

Norway will buy 21 million U.N.-backed certified emission reductions (CERs) for an average price of 2.28 euros each in its international tender to purchase carbon offsets, said the financial institution in charge of the deal on Monday.

Source: Reuters, 9 July 2014

The Carbon Market

23.06.2014

The carbon market closed down:

• EUA spot closed at € 5,75
• EUA DEC14 futures closed at € 5,79
• CER futures contract Dec14 closed at € 0,14
• Brent Crude Fronth Month trade at $ 114,37
• German Power Front Month trade at € 32,75

Volutary Market News

The International Federation of Association Football has pledged to offsets all direct emissions from the World Cup, estimated at 59,200 tones of carbon dioxide (tCO2), and Brazil has encouraged private companies to purchase and donate offsets to help reduce some of the 1.4 million tCO2e or so indirect emissions from the tournament, mainly caused by plane travel.

So far, 11 companies – including the Brazilian subsidiaries of Solvay S.A., ArcelorMitall, and Bunge Limited – have stepped up to the plate, purchasing 420,500 t CO2, covering about a third of the World Cup’s total emissions.

Source: EcoSystem Market Place, Washington, 2014

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.