Carbon Weekly Newsletter

This newsletter was published 16.9.2020 at 19:53pm CEST

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

EUAs have almost touched 31 EUR/EUA for the second time this year on the back of 2030 climate targets optimism. European Commission proposed a target of 55% percent emissions cut by 2030 from 1990 levels. Currently the target is set at 40% but it is unlikely that EU will reach its goal of net zero emissions by 2050 without adjustments. Additionally, proposed change would include building, road transportation and shipping in EU ETS. EU is very ambitious with plans to reduce emissions which is also confirmed by issuance of 225 billion EUR of green bonds. Money raised from selling the bonds will be used to finance environmental projects. EUA prices were already pushing higher last week in anticipation of optimistic outcome from the European Commission but dropped after the official announcement. However, day still closed with a gain so further price increase may follow in the next days. Immense auction supply volume that started in September seems to be easily absorbed by the market as many auctions keep clearing above the secondary market prices. This is a clear sign of strength, especially at these high prices.

German power prices are up 2 EUR/MWh since last week, with the front year contract trading at 42.00 EUR/MWh. API2 coal prices are up by 2.25 USD/tonne since last week, with the Cal21 contract trading at 58.75 USD/tonne. EUR/USD is unchanged since last week and is currently trading at 1.1830.

Price development of EUA Dec2020 futures contract
Yours sincerely,
Jan Kresnik 
Carbon Trader

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