Emissions Trading / Carbon Market News (13/04/2020)

Dear Madam or Sir,

In the past year, the specific emission factor for the generation of one kilowatt hour of electricity in the average German electricity mix fell to 401 grams, which is 38% less than in the reference year 1990 and 14% less than in 2018. According to preliminary figures, the number for electricity generation in 2019 was 219 millions of tons of CO2 emitted, compared to 269 million tons in the previous year, and in 1990 electricity generation still caused 366 million tons of CO2.

Due to the slump in the global economy caused by the Corona virus, there is currently a significant oversupply of oil, which is why the oil cartel OPEC and its partners have agreed to cut production by 9.7 million barrels a day in May and June ( 159 liters) to be decided. This is intended to stabilize the price, which again suffered significantly in the past week.

Regardless, prices for greenhouse gas emissions have visibly recovered by more than 17% in the past shortened trading week. In addition to the realization that the market stability reserve will intercept a feared surplus of allowances in contrast to the previous economic and financial crisis, there is now also the fact that the obligated companies have to fulfill their compliance duty to pay for the previous year by the end of the month. So if one speculated on further falling prices, would be now deceived.

  (Average Quotes Exchange / OTC)   
EUA (Spotmarket)17.86 EUR21,03 EUR+3.17 EUR
EUA (December-2019-Future)18.06 EUR21,08 EUR+3.02 EUR
CER (Spotmarket)0.31 EUR0,31 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)34.95 USD31,77 USD-3.18 USD
EURO (Currency, Forex)1.0802 USD1,0923 USD+0.0121 USD



With kind regards,

Advantag Services GmbH