Carbon Weekly Newsletter

This newsletter was published 18.8.2021 at 4:34pm CEST

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

EUAs are keeping their bullish momentum, aiming for first daily close above 58 EUR. Halved auctions in August have been clearing above the secondary market most of the time, helping the rise. Lack of supply affected market liquidity which might have been one of the reasons for quick and one-sided market recently. EUAs rose almost 10 percent in the past few weeks. A fair share of recent gains could be contributed to continuously up-trending European energy complex, especially natural gas and coal. Coal keeps on making new highs daily, while gas has slowed its pace and retraced almost 10 EUR from the recent highs. Subsequently Central and Southern Europe are experiencing increased power prices as well and those could remain up-trending. Many analysts suggest that EUAs might be lagging behind energy commodities and that we could breach all time high at 58.64 EUR sooner rather than later. EUAs have found a new base above 56 EUR and any attempts to bring the market lower have been short-lived. Carbon emission allowances continue to be one of the best performers in commodity markets year-to-date, with more than 60 percent gain in 2021 alone.

German power prices are up by 1.95 EUR since last week, with the front year contract trading at 83.85 EUR/MWh. API2 coal prices are up by 5.7 USD since last week, with the Cal22 contract trading at 108.05 USD/tonne. EUR/USD is down by 20 points since last week and is currently trading at 1.1710.

Price development of EUA Dec2021 futures contract

 

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