Carbon Market News (25/04/2022)

Dear Madam or Sir,

The submission deadline for the compliance year 2021 in the mandatory European emissions trading system EU ETS ends at the end of this week.

As was often the case in previous years, there was a small rally, which was triggered last Wednesday by the news that the Energy Committee of the European Parliament largely supports the EU Commission’s proposal for a reform of EU emissions trading in order to achieve the agreed reduction in greenhouse gases 55% to implement 2030. The main negotiations on the reform should begin in June at the latest.

Added to this were last-minute buyers who had probably been waiting for even cheaper prices and the breakthrough of the 80-euro mark, which then resulted in a price increase of more than 9%.

On a weekly closing basis, the spot market closed even higher than the December-22-Future due to the deadline, posting a weekly gain of more than 12%.

After only 6,957,000 EUA were auctioned last week, there are almost twice as many emission certificates in the new trading week with 12,786,000 on all five trading days.

Due to the pending end of the submission period this Friday and the closing price of just under the 90-euro-mark, the price should not offer any particularly favourable buying opportunities, at least in the coming days, despite the higher auction volume.

In the next week, developments in the war in Ukraine should again be one of the dominant topics on the market.

  (Average Quotes Exchange / OTC)   
Instrument15/04/2222/04/22Change
EUA (Spot-Market)79.88 EUR89.59 EUR+9.71 EUR
EUA (December-2022-Future)79.97 EUR88.99 EUR+9.02 EUR
VCU (Voluntary Carbon Units ø)11.53 USD10.91 USD-0.62 USD
VER (Gold Standard Spotmarkt ø)6.06 USD5.91 USD-0.15 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)111.41 USD105.91 USD-5.50 USD
EURO (Currency, Forex)1.0810 USD1.0799 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 (19/04/2022)

Dear Madam or Sir,

The ongoing war between Russia and Ukraine with no sign of a truce is currently driving oil supply fears as demand is expected to pick up as the holiday season approaches in Europe and North America.

In addition, Russian production fell by 7.5% in the first half of April compared to March, and EU governments have already announced that they are preparing proposals to end Russian crude oil imports.

Even though China refined oil 2% less in March than a year earlier, on slowing economic growth and concerns over further corona measures in China, bulls have held the upper hand in the oil market and Brent crude prices in comparison increase by almost nine percent compared to the previous week.

The prices for European carbon emission allowances, on the other hand, were unaffected by this and closed just below the EUR 80 mark almost unchanged, continuing the sideways movement that has been ongoing since mid-March.

In this trading week, due to Easter Monday, a total of 6,957,000 EUA will be auctioned at the Leipzig EEX on just three trading days.

This and the approaching deadline at the end of next week could push prices back above the 80s level barring any clearly bearish news.

  (Average Quotes Exchange / OTC)   
Instrument08/04/2215/04/22Change
EUA (Spot-Market)80.15 EUR79.88 EUR-0.27 EUR
EUA (December-2022-Future)80.09 EUR79.97 EUR-0.12 EUR
VCU (Voluntary Carbon Units ø)11.45 USD11.53 USD+0.08 USD
VER (Gold Standard Spotmarkt ø)5.98 USD6.06 USD+0.07 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)102.27 USD111.41 USD+9.14 USD
EURO (Currency, Forex)1.0875 USD1.0810 USD-0.0065 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 (11/04/2022)

Dear Madam or Sir,

The terrible war in Ukraine and the still omnipresent corona pandemic dominates the news, leaving little time for other topics. That is why we are pointing out the climate crisis in particular today, which will continue to develop in the direction of a catastrophe if we do not see Corona and the war in Ukraine and the associated problems with the supply of fossil fuels as an opportunity to immediately set the course towards to decarbonize the world.

From the beginning of industrialization to 2019, humanity released a total of 2,400 gigatonnes of greenhouse gases. In the period from 1850 to 1989, i.e. within 140 years, there were 1,400 gigatonnes of CO2e, i.e. 58% of the total emissions. Over the last three decades from 1990 to 2019, we released the remaining 1,000 gigatonnes of CO2e into the atmosphere. And the last decade sets another, sad record – in the period 2009-2019 it was 410 gigatonnes of CO2e, which is 17% of the emissions between 1850 and 2019.

Last week, the German federal government decided on the course for the reassignment of CO2 pricing in the building sector, which is now to begin in 2023. So far, this has been borne entirely by the heating costs of the tenants, but from next year there will be a phased model that passes the burden on to the landlord in terms of how harmful his building is to the climate.

If an apartment has a poor energy balance of more than 52 kilograms of CO2 per square meter, the landlord now pays 90% and the tenant only 10% of his heating costs. This should then be reduced in up to 10 steps down to 0% for the landlord, insofar as the building complies with the EH55 energy standard or better. In this case, the tenant continues to bear all costs for CO2 pricing in accordance with the Fuel Emissions Trading Act (BEHG).

Germany was the first country in Europe to introduce national emissions trading through BEHG, and the European Union is now toying with the idea of ​​introducing this across the EU in order to ensure that CO2 emissions in the building and transport sectors are priced accordingly in all countries. It will be interesting to see how quickly this will be implemented.

Due to the Easter holidays, there will only be an auction on EEX on four days this week and the following week; in the coming week there will only be three auction dates for EU emission allowances. Accordingly, the prices have now been slightly bullish and closed above the 80-euro-mark on Friday.

  (Average Quotes Exchange / OTC)   
Instrument01/04/2208/04/22Change
EUA (Spot-Market)78.28 EUR80.15 EUR+1.87 EUR
EUA (December-2022-Future)78.49 EUR80.09 EUR+1.60 EUR
VCU (Voluntary Carbon Units ø)10.99 USD11.45 USD+0.46 USD
VER (Gold Standard Spotmarkt ø)6.29 USD5.98 USD-0.31 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)104.38 USD102.27 USD-2.11 USD
EURO (Currency, Forex)1.1028 USD1.0875 USD-0.0153 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 (04/04/2022)

Dear Madam or Sir,

Even if Corona paralyzed many areas of public life last year, at least partially, the past year 2021 was the year with the highest ever recorded CO2 emissions in the sector of ​​global energy-related emissions.

In total, the incredible number of 40.8 billion tons of CO2e was emitted. Leading the way was coal at 37% for more than 15 billion tons responsible, followed by oil at 10.7 billion tons (26%) and gas (NG) at 7.5 billion tons, accounting for 18% of global emissions. Methane gas is responsible for 10% or 4 billion tons of greenhouse gas and the remaining 9% is shared by industrial processes, waste and other industrial greenhouse gas generation.

At the end of last week, US President Joe Biden announced the release of one million barrels of oil per day for the next six months, which caused the price of Brent crude oil to fall below the USD 100 mark for a short time and showed a clear minus based on the weekly closing price.

One can only hope that the politicians responsible in the western world, due to the record number of greenhouse gas emissions and the background of the dependence on Russia and the Arab states, have finally understood that there is no alternative to the path to decarbonization of society.

In the past week of trading, the prices for the carbon emission allowances (EUA) of the European emissions trading system EU ETS moved sideways and closed almost unchanged on the basis of the weekly closing price.

A total of 5,575,500 EUAs will be auctioned this week on the Leipzig European Energy Exchange, as well as 600,000 EUAA for aviation, but aircraft operators could also use EUAs, since the price difference is marginal. The auction dates for Germany’s national emissions trading will also take place again this Tuesday and Thursday, with both 2021 and 2022 national emission certificates (nEZ) being able to be purchased.

  (Average Quotes Exchange / OTC)   
Instrument25/03/2201/04/22Change
EUA (Spot-Market)78.31 EUR78.28 EUR-0.03 EUR
EUA (December-2022-Future)78.60 EUR78.49 EUR-0.11 EUR
VCU (Voluntary Carbon Units ø)10.97 USD10.99 USD+0.02 USD
VER (Gold Standard Spotmarkt ø)6.20 USD6.29 USD+0.09 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)119.31 USD104.38 USD-14.93 USD
EURO (Currency, Forex)1.0981 USD1.1028 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