Carbon Weekly Newsletter

This newsletter was published 14.9.2022 at 16:57pm CEST

The current prices on the European carbon market are as follows:

After 15 days of mostly dropping, EUAs finally pushed to the upside early this week. First auction of the week cleared 40 cents above secondary market price, which triggered aggressive buying after the result was published. It only took a few hours for EUAs to gain almost 10 percent, before settling at 71.82 EUR for December 2022 futures contract. Nearing of September quarterly option expiry next Wednesday could have some impact on the prices or cause tighter ranges before EUAs find momentum again. The highest open interest for this expiry lies at 80 EUR/EUA at around 6.5 million EUAs. The next big level is at 60 EUR/EUA with 5 million EUAs. Closest level at 70 EUR holds only 1.5 million EUAs. Even after today’s speech of European Commission president Ursula von der Leyen, there was no mention of possible MSR sales or any other concrete solution to help industry and households, fighting high bills. Power and gas markets reacted with further strengthening of the price. It seems that no clear solutions for the current energy crisis are at hand and prices won’t back down until a clear roadmap is laid down. The only EU ETS mention came from Frans Timmermans later, who opposed price cap of emission allowances. This was a fundamental catalyst which caused the move of 3 EUR today in the afternoon hours.

German power prices are down by 7.00 EUR since last week, with the front year contract trading at 517.00 EUR/MWh. API2 coal prices are down by 25.00 USD since last week, with the Cal23 contract trading at 307.00 USD/tonne. EUR/USD is up by 85 points since last week and is currently trading 0.9985.

Price development of EUA Dec2022 futures contract

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