Advantag : Emissions Trading / Carbon Market News (2017-01-30)

Dear Ladies and Gentlemen,

During the recent months, the CO2 market was, as is well known, characterized by high volatility. The price range covered an enormous margin of more than EUR 2.50. However, a clearly bullish or bearish trend was not apparent at any time.

Since the beginning of the new calendar year, we can identify a new chart, which was also to be expected in the light of the high auction volumes. Since then, the price jumps were no longer so spectacular and moved only in a rough range between EUR 5.00 and EUR 5.50. In the past week, the price has fallen a few times below the lower line, but as magnetically returned over the five-euro mark time and again. The cold weather and the compliance purchases typical for the first quarter of a year certainly contributed to this effect.

In the coming weeks, the legislative process in the case of the reform of the European Emissions Trading Scheme will continue. If the ambitious proposals from the environmental department are not supported, the carbon price will have a hard time keeping the current line in the course of the year. However, if the EU bodies follow the dynamic course envisaged by the ENVI, the market is likely to reward that with a gentle upward movement.

The inauguration of the 45th American President in Washington attracted so much international attention, that the conclusion of the World Economic Forum in Davos on the same day had little room for reporting. While in the US, an active opponent of globalization and climate protection is pursuing an isolationist policy, the Chinese president, Xi Jinping, positioned himself as the most profound defender of globalization. He admitted in his opening speech that globalization also includes snares; but they are clearly visible and should now be taken seriously. According to Xi, 'many of the problems that the world is actually facing are not caused by economic globalization'.

On the question of the future climate policy of the USA, German Environment Minister Barbara Hendricks, however, was confident that Trump would not succeed in making a turnaround. If necessary, however, Europe would have to 'push forward with China' in the future in climate protection. It is, of course, essential that Europe finally defines a clear, common position here.

(Average Quotes Exchange / OTC)
Instrument	2017-01-27	2017-01-20	Change
EUA (Spotmarket)	4.91 EUR	5.42 EUR	-0.51 EUR
EUA (December-2017-Future)	4.92 EUR	5.43 EUR	-0.51 EUR
CER (Spotmarket)	0.28 EUR	0.28 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	55.58 USD	55.44 USD	+0.14 USD
EURO (Currency, Forex)	1.0714 USD	1.0703 USD	+0.0011 USD

(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask have usually in Spot Market a visible spread. CER CP1 and ERU are eligible in ETS until end of March 2015 and must be swapped into EUA. Crude Oil and Euro Currency shows day-end-exchange quotes. These market information has just an informational character and are no advice or offer to trade carbon emission rights or their futures and options. If you want to unsubscribe, please reply to this mail.)

Please call our international carbon desk if any further questions exist: +49.2831.1348220 or +44.20.79790283.

With kind regards,

Advantag Brokerage GmbH