The CO2 Market 03.02.2021

The EU ETS Price

The price of the EUA certificate on the ICE ECX London opened this morning (03.02.2021) the EUA trade sessions at 34,97 €/tCO2 and has jumped to 37.11€/tCO2 at 14.00h with 6.12% increase.

EUAs leap 6.5% to eye record as fund fever triggers technical breach and EUAs jumped more than 2€ to near-record levels above 35€ on Tuesday, 02.02.2021, as reports of bullish fund managers and a strong auction pushed carbon to a technical breakout.

Investments in Decarbonization Increased in 2020

The world committed a record $501.3 bln to decarbonisation in 2020, beating the previous year by 9% despite the economic disruption caused by the pandemic, according to BloombergNEF’s newly published Energy Transition Investment Trends report in January.

Global investment in renewable energy capacity moved up 2% to $303.5 bln in 2020. This was the second-highest annual figure ever – after 2017’s $313.3 bln – and the seventh consecutive total of more than $250 bln.

France Exists from Coal in 2024

In the pursuit of decarbonization, the French central bank said on Monday, 18th January, that it would exit from coal and limit exposure to gas and oil in its investment portfolio by 2024, as part of a shift towards more environmentally friendly assets. It said in a statement that by the end of this year it will no longer invest in companies that generate more than 2% of their revenues from coal, and reduce the threshold – currently standing at 10% – to zero by the end of 2024. It added it would also exclude by 2024 companies with more than 10% of revenue coming from oil or 50% from gas, which could potentially mean the central bank would have to shun firms like French energy major Total.

Source: ICE ECX, Carbon Pulse & Bloomberg, London

CO2 Market – 26.01.2021

EUA Price

The price of the EUA certificate on the ICE ECX London stock exchange closed Friday, 22.01.2021, at 34,63 € / tCO2, and opened this morning (26.01.2021) the EUA trade sessions at 32,95 € / tCO2.

This compliance period is particularly difficult for many companies and most of the EU analysts expect a trading range of 31-36 eur/EUA for the next 4 months of trading.

Net-zero, carbon-neutral, carbon-negative – confused by all the carbon jargon?

You might have heard a lot of talk about “going net-zero” in the media lately. China recently announced it intends to achieve the goal by 2060. The European Union, the United Kingdom and New Zealand will go net-zero by 2050. In Australia, all states and territories have a net-zero strategy and the federal government is under pressure to make a national commitment.

You might also have heard references to “zero emissions”, “low emissions” and going “carbon-neutral” So let’s get clear on what all these terms mean in practice. To understand the term “net-zero emissions”, we must also understand what it is not. It should not be confused with the following related, but separate, concepts:

Zero emissions

This refers to a process where no CO₂ is released at all. In fact, in our current global mining and manufacturing system, no technology produces zero emissions.

Technologies such as solar panels and wind energy are often said to be zero-emissions but technically, they’re not. They have what are known as “embedded emissions” – those created in manufacturing the technology. However wind and solar produce no ongoing emissions after installation, unlike fossil fuel energy.

Low emissions

Generating greenhouse gases at a lower rate than business as usual. Examples include switching from coal-fired to gas-fired power to generate the same amount of electricity, but with fewer emissions.

Carbon-negative

This means removing CO₂ from the atmosphere, or sequestering more CO₂ than is emitted. This might include a bioenergy process with carbon capture and storage.

So, what are net zero emissions for countries or companies?

Net zero emissions

At the global or country level, we will achieve net-zero emissions when any remaining human-caused GHG emissions are balanced out by removing GHGs from the atmosphere in a process known as carbon removal.

When we are speaking about net zero emissions of companies, emissions are still being generated byt they are offset by the same amount elsewhere. The term „carbon-neutral” is sometimes used instead of net-zero, and they broadly mean the same thing.

The move towards net-zero is crucial to avoid a climate catastrophe. And the time to move is not tomorrow or “by 2050”. It is now, as most of scientist affirms it.

Source: ICE ECX & Energy in Demand, London

CO2 Market – 05.01.2021

EU ETS begins 2021 with record highs

EU emissions trading system (ETS) allowances made a strong start to 2021, rallying to all-time highs in the first ans second week of the year, after taking direction from upward moves in the wider energy complex and on a backdrop of constricted permit supply.

The EU ETS December 2021 contract ended week 1 at €34.91/tCO2, the highest close for the front-year product since the EU ETS began. This was up by €2.19/t CO2 from where it ended 2020, marking the contract’s 10th consecutive week-on-week rise and its largest since the week beginning 24 August.

The prices went up in the second week till €35.65/tCO2 on 12.01.2021 and, then started to decrease. The EUA price on the ICE ECX exchange from London has been trading today, 18.01.2021, at €32/tCO2.

EU ETS emissions see big drop in 2019, latest EEA assessment shows

In 2019 the number of EU ETS emission allowances auctioned decreased by 36 % compared to 2018. However, total revenues from auctions increased by EUR 447 million because of higher carbon prices.

The EEA briefing ”The EU Emissions Trading System in 2020: trends and projections” found that the drop in emissions from facilities covered by the EU ETS was again driven by a strong shift in the fuels used for electricity generation, from coal towards less carbon-intensive energy sources such as gas and renewables. However, emissions from aviation, also covered by the ETS, continued to increase (1 %), reflecting the increasing demand for air travel in 2019.

The observed reduction in emissions between 2018 and 2019 was due to the increased price of CO2, which made coal less attractive, combined with the rising share of renewables in the total energy supply. Many countries also saw a switch from coal to natural gas.

Continued decreased in EU ETS emissions have been forecast for 2020 and 2021, but these projections do not take into account some of the most recently planned measures, and the impact of COVID-19 pandemic.

Source: ICE ECX, London & EEA, Paris

CO2 Market – 05.01.2021

This morning 05.01.2021, the ICE ECX exchange in London opened with € 33,44 / tCO2. Yesterday, 04.01.2021, the EUA price reached the threshold of 34 € / tCO2, which the highest value reached up until now.

Causes of EUA increase

EUAs hit a new all-time high on Monday as cold weather prospects lifted the energy complex and allowance supply curbs continue to drive bullish sentiment.

Driving the latest uptrend rally is also the recent decision by the European Union to cut greenhouse-gas emissions by at least 55% of 1990 levels by 2030. Traders are also expecting regulations on the burning of fossil fuels will be tightened to meet the new target, including reducing the number of carbon credits available. The increased future ambition of emissions reductions will reduce supply and lower supply should lead to higher prices.

The prospect of high returns has drawn established commodities players into the carbon market. The Wall Street Journal remarks that banks like Morgan Stanley and trading houses such as Andurand Capital and Trafigura have all entered or expanded their positions in the carbon market in recent months.

Source: ICE ECX London & World Street Journal

Happy Seasons!

We have reached the end of another year together and, as always, our best wishes are for you!

2020 has certainly put a strain on the world’s economy and on the temperament of the people that actively work for it, pushing our communities to find new solutions for work, for sustainable growth towards a better life.

However, even among the difficulties, the world has been able to move along keeping its feeling of hope alive. This has been possible thanks to the people, their faith, commitment and action.

The price of the EUA certificate

This morning 08.12.2020, the ICE ECX exchange in London opened with € 29,69 / tCO2. Last Friday, 04.12.2020, the EUA price reached the threshold of 30 € / tCO2. Unfortunately, following the announcement of the European Commission in 18.11.2020, by which the free allocation for 2021 will possibly delay a few months after compliance, we expect a difficult situation for EU ETS companies that have to buy EUA certificates. As a result, polluting companies can no longer get cash to buy the necessary compliance certificates for 2020 from the sale of future allocations. We recommend that you check the financial capabilities so that you can buy the CO2 certificates until 30.04.2021 at a price that is approaching the threshold of 30 € / tCO2 as we do not expect it to decrease.

Pollution in the EU

Fewer deaths linked to pollution

The new EEA analysis is based on the latest official air quality data from more than 4 000 monitoring stations across Europe in 2018.
EU, national and local policies and emission cuts in key sectors have improved air quality across Europe, the EEA report shows. Since 2000, emissions of key air pollutants, including nitrogen oxides (NOx), from transport have declined significantly, despite growing mobility demand and associated increase in the sector’s greenhouse gas emissions. Pollutant emissions from energy supply have also seen major reductions while progress in reducing emissions from buildings and agriculture has been slow.

Thanks to better air quality, around 60,000 fewer people died prematurely due to fine particulate matter pollution in 2018, compared with 2009. For nitrogen dioxide, the reduction is even greater as premature deaths have declined by about 54 % over the last decade. The continuing implementation of environmental and climate policies across Europe is a key factor behind the improvements.

“The EEA’s data prove that investing in better air quality is an investment for better health and productivity for all Europeans. Policies and actions that are consistent with Europe’s zero pollution ambition, lead to longer and healthier lives and more resilient societies,” said Hans Bruyninckx, EEA Executive Director.

The report also notes that long-term exposure to air pollutants causes cardiovascular and respiratory diseases, which both have been identified as risk factors for death in COVID-19 patients. However, the causality between air pollution and severity of the COVID-19 infections is not clear and further epidemiological research is needed.

Source: ICE ECX London & Energy in Demand

High Tech Ceramics (HTC) – Technology made in Germany that reduces gas consumption and CO2 emissions with more than 10%

We would like to introduce you to the HTC technology produced and used in Germany for 10 years, tested by TÜV and GWI (Gaswärme Institut e.V. Essen) that can improve the fuel consumption of your production activities and, implicitly, reducing greenhouse gas emissions.

One of the ways to obtain hot water and heat is through boilers that use different types of energy. Thus, consumers want to save this energy, and this technology meets this need.

HTC technology saves energy in boilers for generating hot water and process steam through the heat accumulator at high temperatures.  Through the structure and construction of the ceramics, the hot gases are brought closer to the wall of the combustion chamber, improving the heat transfer. Recirculation of hot gases on incandescent ceramics leads to optimization of combustion and a reduction of emissions.

HTC ceramics store the energy of the flame and finally return it to the system through the radiation of fixed bodies. By the alternating action between the ceramics heat accumulator and the hot water of the boiler, this one cools more slowly  and reaches its operating temperature faster when starting (“Hot start”).

As a result, the burner must work less, the gas consumption being reduced by more than 10%, depending on the type of boiler, and reduces the greenhouse gas emissions, which are produced by combustion.

For more information on this technology and how you can test the compatibility with your boilers system, you can contact us at info@carbonexpert.ro or 00 40 746 231 024.

CO2 Market – 10.11.2020

The International Energy Agency (IEA) published in October 2020 its annual World Energy Outlook (WEO) where the IEA models different scenarios to the long-term developments of the global commodity and energy markets up to 2070.

Main key aways from the report:

* The pandemic has hit oil particularly hard, and total investment in energy dropped by 18%, but the share of renewables in the energy mix is up.
* Coal drops in all scenarios, to be replaced by nuclear and renewables.
* Amongst renewables, solar will experience the greatest growth in the next decade, and wind power will also experience steady growth.
* Primary energy demand in 2040 will still be covered largely by oil and gas.
* The states won’t achieve net-zero emissions until 2070, missing the 1.5oC target for 2050.

As an example, to reduce emissions by 40 per cent by 2030, almost 75 per cent of global electricity generation would have to come from low-emission sources by 2030 and more than 50 per cent of passenger cars sold worldwide would have to be electric in 2030 (compared to 2.5 per cent in 2019).

The ICE ECX exchange from London opened this morning (10.11.2020) its EUA trade sessions at 26,55 Euro/tCO2.

Source: IEA, Paris & ICE ECX London

CO2 Market – 03.11.2020

POLL: Analysts elevate EUA price outlooks as market eyes new all-time highs

EU carbon prices will rise through the rest of this year, though they may not reach a new all-time high or sustainably hold above the tenuous €30 level until well into 2021, analysts predicted, as they substantially raised their EUA forecasts across the board.

The ICE ECX exchange from London opened this morning (03.11.2020) its EUA trade sessions at 24.15 Euro/tCO2, 2,03% more than the previous day.

Source: Carbon Pulse & ICE ECX London

CO2 Market – 27.10.2010

” ELECTRIC UP ” financing program

We inform you that the Emergency Ordinance 159/2020 on financing small and medium enterprises and the HORECA field for the installation of photovoltaic panel systems for electricity production with an installed power between 27 kWp and 100 kWp required for own consumption and delivery of surplus in the System, has appeared. National power, as well as 22 kW recharging stations for plug-in hybrid electric and electric vehicles, through the ” ELECTRIC UP ” Financing Program.

Source: www.imm.gov.ro

Price of the EUA

This morning (October 27, 2020), the ICE ECX exchange in London trades at € 23.85 / EUA, 6.43% less than the previous day.
Mituve are the bearish pressure from big auctions, COVID safeguards, and Brexit uncertainty for the rest of this year, according to analysts, who expect bargain-hunting buyers will step in to cover price dips.

Source: ICE ECX  & Carbon Pulse, London

EU carbon prices to top €80 by 2030 if industrial innovation, wider climate action isn’t ramped up -report

EU carbon prices could soar to average €50 over the next decade and end Phase 4 of the ETS above €80 if abatement technology – particularly in the heavy industrials sector – doesn’t accelerate and governments and companies don’t ramp up their climate action.

That was one of the findings in a report published Tuesday by ABN Amro, with analysts at the Dutch bank warning of a steep rise in EUA prices based on slow progress in cutting emissions mixed with a more rapid reduction in allowance supply during the 2021-30 phase.

Source: Carbon Pulse, London