Emissions Trading / Carbon Market News (04/07/2022)

Dear Madam or Sir,

Since humans settled down around 12,000 years ago, the number of trees worldwide has declined by 46%. There are currently around 400 trees per person, but this number is falling due to ongoing deforestation and increasing world population.

Since forests and trees are extremely important for the reduction of greenhouse gases, city planners in particular should plan more green in the cities. However, more trees in the cities not only plays an important role because of the reduction in greenhouse gases, but also to reduce the temperatures in German cities. Because in cities like Vienna, London or Berlin, the temperature in the inner cities has risen by an average of 3°C since 1960.

But also climate protection projects, which are financed by carbon credits from voluntary emissions trading and, for example, enable afforestation in Asia, Africa or South America, can make a significant contribution here.

The prices for carbon emission allowances in the obligatory European emissions trading system have been above the 90 euro mark several times in the past week, but towards the end of the trading week profit-taking caused a significant drop in prices.

This week, auctions with a total volume of 11,488,500 EUAs will be held on the Leipzig EEX on all five trading days.

  (Average Quotes Exchange / OTC)   
Instrument24/06/2201/07/22Change
EUA (Spot-Market)83.29 EUR85.37 EUR+2.08 EUR
EUA (December-2022-Future)83.43 EUR85.58 EUR+2.15 EUR
VCU (Voluntary Carbon Units ø)8.78 USD8.85 USD+0.07 USD
VER (Gold Standard Spotmarkt ø)3.96 USD4.11 USD+0.15 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)113.05 USD111.55 USD-1.50 USD
EURO (Currency, Forex)1.0506 USD1.0424 USD-0.0082 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 has usually in Spot Market a visible spread. The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. Crude Oil and Euro Currency shows day-end-exchange quotes. This 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.

With kind regards,

ADVANTAG Services GmbH

Emissions Trading / Carbon Market News (27/06/2022)

Dear Madam or Sir,

This time, the proposal by the EU Parliament to reform the EU emissions trading scheme was adopted by a large majority of 439 votes in favour, 159 against and 32 abstentions.

This is an important step towards reforming emissions trading. This position is now going into the forthcoming negotiations with the EU countries, where dissenting voices are to be expected, particularly in countries that are highly dependent on fossil fuels.

However, the opponents of a tightening of emissions trading should not forget that otherwise the goals of the Paris climate protection agreement would not even begin to be achievable. A further weakening of this second compromise proposal, which of course was again based on the lowest common denominator, would also considerably weaken not only Europe’s role model function but also its negotiating position as the third largest global emitter of greenhouse gases.

The prices for European emission allowances (EUA) showed a slight recovery in the past week on a weekly closing basis, as in the week before. The December 2022 benchmark futures contract on the ICE traded in a range of EUR 81.20 and EUR 85.43.

This week, a total of 8.83 million EUAs will be auctioned at the Leipzig EEX.

  (Average Quotes Exchange / OTC)   
Instrument17/06/2224/06/22Change
EUA (Spot-Market)82.24 EUR83.29 EUR+1.05 EUR
EUA (December-2022-Future)82.37 EUR83.43 EUR+1.06 EUR
VCU (Voluntary Carbon Units ø)9.20 USD8.78 USD-0.42 USD
VER (Gold Standard Spotmarkt ø)4.45 USD3.96 USD-0.49 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)114.54 USD113.05 USD-1.49 USD
EURO (Currency, Forex)1.0495 USD1.0506 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 has usually in Spot Market a visible spread. The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. Crude Oil and Euro Currency shows day-end-exchange quotes. This 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.

With kind regards,

ADVANTAG Services GmbH

Emissions Trading / Carbon Market News (20/06/2022)

Dear Madam or Sir,

Despite the ongoing pandemic situation last year, emissions from Germany’s plants covered by the European emissions trading system EU ETS will be almost back to the pre-Corona level in 2021.

The energy sector in particular has contributed to this, with emissions rising for the first time since 2013. These were 14% or 235 million tonnes of CO2 higher than in the previous year, since more coal was used during the economic recovery despite higher CO2 prices. Ultimately, this has also led to a corresponding increase in electricity prices since then.

The emissions of the energy-intensive industry in Germany only increased moderately by 5% compared to the previous year, but they were almost at the pre-corona level.

After there were significantly fewer flight movements in 2020, the share of German aviation emissions rose last year by a fifth to 4.6 million tons of CO2.

Regarding the targets for reductions in the EU ETS (minus 43% compared to 2005 by 2030), Germany is currently 31%, visibly behind the European average of 38% compared to 2005. And at the European level, Germany was also the leader in increasing the Greenhouse gas emissions, which makes further efforts to ensure compliance with the Paris climate protection agreement by politicians urgently necessary.

After the reform proposal of the environment committee was rejected by a majority of the European Parliament two weeks ago, a new compromise proposal is now to be voted on Wednesday. Now the reduction factor should be more than 63% and the linear annual reduction factor 4.4% in 2024 and 4.6% from 2029 compared to the previously proposed 4.5%. This is currently 2.2%, after having been 1.74% in the third phase of EU emissions trading. In addition, the free allocation of emission rights is to expire in the years 2027-2032.

The market for EU emission allowances reacted with a moderate weekly gain of 51 cents in December futures. The vote on Wednesday will remain exciting.

  (Average Quotes Exchange / OTC)   
Instrument10/06/2217/06/22Change
EUA (Spot-Market)81.74 EUR82.24 EUR+0.50 EUR
EUA (December-2022-Future)81.86 EUR82.37 EUR+0.51 EUR
VCU (Voluntary Carbon Units ø)10.42 USD9.20 USD-1.22 USD
VER (Gold Standard Spotmarkt ø)4.62 USD4.45 USD-0.17 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)122.01 USD114.54 USD-7.47 USD
EURO (Currency, Forex)1.0515 USD1.0495 USD-0.0020 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 has usually in Spot Market a visible spread. The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. Crude Oil and Euro Currency shows day-end-exchange quotes. This 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.

With kind regards,

Advantag Services GmbH

Emissions Trading / Carbon Market News (13/06/2022)

Dear Madam or Sir,

Last Wednesday, the EU Parliament met and voted on the proposals for the reform of EU emissions trading system. These were rejected with 340 no and 265 yes votes.

MEP Dr. Peter Liese, who worked out the compromise proposal and brought it to the vote, sees the main blame for this in particular with the social democratic parliamentary group, which was particularly dissatisfied with the timetable for the introduction of the CO2 border taxation and the expiry of the free allocation of CO2 emission rights.

The Greens, on the other hand, found the proposal too softened by the lobbyists of the fossil industry, as MEP Michael Bloss announced.

Now the talks in the Environment Committee regarding the reform of the EU ETS have to start all over again.

The market then reacted with significant losses, but remained stable above the EUR 80 mark towards the end of the trading week.

In the new week, a total of 8,830,500 EUAs and 600,000 emission allowances for the aviation industry (EUAA) will be auctioned at the Leipzig energy exchange EEX.

  (Average Quotes Exchange / OTC)   
Instrument03/06/2210/06/22Change
EUA (Spot-Market)88.73 EUR81.74 EUR-6.99 EUR
EUA (December-2022-Future)88.87 EUR81.86 EUR-7.01 EUR
VCU (Voluntary Carbon Units ø)10.85 USD10.42 USD-0.43 USD
VER (Gold Standard Spotmarkt ø)4.98 USD4.62 USD-0.36 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)121.69 USD122.01 USD+0.32 USD
EURO (Currency, Forex)1.0562 USD1.0515 USD-0.0047 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 has usually in Spot Market a visible spread. The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. Crude Oil and Euro Currency shows day-end-exchange quotes. This 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.

With kind regards,

Advantag Services GmbH

Emissions Trading / Carbon Market News (06/06/2022)

Dear Madam or Sir,

The rapporteur on the European emissions trading system EU ETS and spokesman for the largest group in the European Parliament (EPP, Christian Democrats) Dr Liese presenting an amendment from his group and the liberal Renew Europe group, Peter Liese said: “With our compromise amendment, we give industry and citizens more breathing space in difficult times and avoid a price shock in 2024. At the same time, we achieve even more greenhouse gas reductions than in the Commission proposal. “

However, with a four-vote majority against Liese’s recommendation, the committee approved a significant increase in ambition compared to the European Commission’s proposal. Instead of the Commission’s proposed 61% reduction in greenhouse gas reductions, the committee voted for 67%. In addition, a vote was taken to withdraw around 240 million certificates in 2024. The Renew group has now agreed to a compromise. The one-time reduction is now only to be 70 million in 2024 and a further 50 million emission rights are to be withdrawn from the market in 2026.

By assuming a higher linear reduction factor, according to Dr. Liese the target be changed to 63% by 2030, which is also important and the total emissions between 2024 and 2030 are therefore lower than the Commission proposal and ultimately more ambitious.

In addition, the EPP tabled the following amendments, among others, such as a joint amendment on carbon leakage protection for ports, an amendment on a bonus for sustainable alternative fuels in shipping, an exemption for ships carrying LNG and hydrogen, and one amendment to restrict market access to avoid manipulation and speculation.

In addition, the EPP wants to submit an amendment to all seven Fit-For-55 reports this week in plenary to call for a regulatory moratorium in view of the high energy and commodity prices and the war in Ukraine.

On a weekly basis, EU emissions allowances have risen by 5.5% and are heading back towards the EUR 90 mark, which has been breached several times in the past six months.

This was not least due to the fact that last week, due to the public holidays, a total of only five million EUAs were auctioned at the Leipzig EEX on just two days. Due to Whit Monday, a total of 9.2 million EUAs will only be offered on four days this week.

  (Average Quotes Exchange / OTC)   
Instrument27/05/2202/06/22Change
EUA (Spot-Market)84.08 EUR88.73 EUR+4.65 EUR
EUA (December-2022-Future)84.20 EUR88.87 EUR+4.67 EUR
VCU (Voluntary Carbon Units ø)10.76 USD10.85 USD+0.09 USD
VER (Gold Standard Spotmarkt ø)4.73 USD4.98 USD+0.25 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)115.08 USD121.69 USD+6.61 USD
EURO (Currency, Forex)1.0732 USD1.0747 USD+0.0015 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 has usually in Spot Market a visible spread. The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. Crude Oil and Euro Currency shows day-end-exchange quotes. This 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.

With kind regards,

Advantag Services GmbH