Emissions Trading / Carbon Market News (16/01/2023)

Dear Madam or Sir,

One of the world’s most renowned scientists in the field of research into global climate change is Professor Dr Hans Joachim Schnellnhuber. He is a physicist, member of the Intergovernmental Panel on Climate Change (IPCC) and founder of the Potsdam Institute for Climate Impact Research (PIK). In an interview with the German ARD TV-magazine Panorama, he discussed his ideas about justice in climate protection.

The scientist suggests that each person gets a budget of three tons of CO2 per year. If one need more, he must pay for them with carbon emission allowances. This annual budget results from the simple calculation that every citizen on earth can only emit three tons of CO2 or its equivalent in other greenhouse gases (CO2e) per year in order to continue to make the 2°C goal still possible.

With this, the people who emit less greenhouse gases could generate income and the wealthy and rich would be asked to pay, whose emissions according to the Paris “World Inequality Lab” emit around 100 tons a year, multi-billionaires sometimes up to 2,000 tons a year. The average German causes greenhouse gas emissions of around 10 tons per year.

Incomprehensibly, the Green German climate protection minister Habeck has positioned himself clearly against such private emissions trading, although it is already foreseeable that Germany will miss its climate protection goals significantly in this decade.

Last week, the European carbon emission allowances showed a plus of 3.2% on a weekly closing basis with a trading range in the December 2023 benchmark contract between 77.01 and 82.58 euros. The first auctions this year of a total of 9.2 million emission allowances showed good demand and thus supported the course as well as the prospects of cooler weather in Central Europe.

In the new trading week, a total of 11,842,500 will be auctioned on all five trading days at the Leipzig European Energy Exchange EEX.

If the EUAs do not break through the support line currently at 77.60 (benchmark) on a closing price basis, the price could range between EUR 77.60 and almost EUR 85.00 this week, as long as there are no important price-moving news.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)75.86 EUR78.09 EUR+2.23 EUR
EUA (December-2023-Future)77.39 EUR79.86 EUR+2.47 EUR
VCU (Voluntary Carbon Units ø)3.50 USD2.80 USD-0.70 USD
VER (Gold Standard Spotmarkt ø)2.98 USD2.89 USD-0.09 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)78.51 USD85.44 USD+6.93 USD
EURO (Currency, Forex)1.0644 USD1.0831 USD+0.0187 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