Month: September 2023

Dear Madam or Sir,

A few weeks ago, we reported on the US billionaire Tom Steyrer, who will continue to expand the real estate portfolio of his investments over the next three years and make them climate-neutral (“Net Zero”) within three years.

His company Galvanize Climate Solutions has now taken the first step by raising one billion US dollars towards “Net Zero”, thereby securing the path for climate-neutral real estate.

Tom Steyrer is clear that properties that cannot be operated in a climate-neutral manner will pose a problem for every portfolio in the coming years.

Accordingly, the IGP Group’s services in Europe are tailor-made to accompany existing properties on their way to Net Zero. With IGP Green Solutions GmbH (www.igp.green), we bundle all of our group’s competencies in addition to CO2 emissions trading and offer property owners the path to climate neutrality and thus to maintaining and increasing value.

To begin with, our engineers will work out a plan on how we can implement renewable energy for the buildings and optimize energy efficiency. We will then show you the path to “Net Zero”, which can then be implemented modularly in stages. Starting from renewable energies to the use of hydrogen in a neighbourhood solution.

For larger operators, financing is often achieved through the elimination of the emissions trading obligation and receipt of funding, which is bundled in the overall concept. But existing owners of residential or commercial properties also benefit from these future solutions.

The prices for CO2 emission rights in the EU emissions trading rose by almost 4% last week and have broken the 85 euro mark again. Technical indicators made the difference here. The 38-day line was an important resistance here and the 80-euro-mark should be a good limit on the downside. The 200-day line is currently at 86.79 euros and could be seen as a barrier, especially since profit-taking could be expected.

This week, a total of 14,601,000 EUAs will be auctioned on the Leipzig EEX on all five trading days. The demand for the auctions will certainly be in the interests of market participants.

(Average Quotes Exchange / OTC)
Instrument	15/09/23	22/09/23	Change
EUA (December-2023-Future)	82.31 EUR	85.48 EUR	+3.17 EUR
VER (Natural Carbon Offsets)	1.77 USD	2.29 USD	+0.52 USD
VER (CORSIA eligible Carbon Offsets)	0.71 USD	0.75 USD	+0.04 USD
nEZ (German National Carbon Units)	30.00 EUR	30.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	94.16 USD	93.54 USD	-0.62 USD
EURO (Currency, Forex)	1.0658 USD	1.0644 USD	-0.0014 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

Dear Madam or Sir,

Shipping traffic will be subject to compliance in the EU emissions trading from January 1st, 2024. However, this only starts with 40% of emissions next year and then rises to 100% of emissions caused by 2026, provided that ports are called in the EU or nearby.

Initially only ships with 5,000 gross registered tons or more are affected; this limit will drop to 400 gross registered tons in 2027.

Daniel Gent is energy and sustainability manager at the car transport shipping company UECC and expects the price of a ton of ship diesel to increase by around 117 euros next year and by around 293 euros in 2026, although rising prices for emission rights are quite different numbers could reach.

Shifting the costs to the clients and ultimately their customers is one possible way, but here too those ship fleet operators who succeed in advancing the decarbonization of their fleet will have a corresponding competitive advantage.

Last Wednesday, EU emissions rights prices visibly rose, but EUAs were unable to maintain the momentum until the end of the trading week. Accordingly, based on the weekly closing price, they only closed with a moderate gain of less than one percent.

In the new trading week, 11,524,500 EUA and 775,500 EUAA for the aviation industry will be auctioned on the EEX. However, these can now also be used for stationary systems to fulfil their compliance obligations.

This Thursday will be the last time that national German emissions certificates for 2022 will be auctioned off. Even if these have the same price of EUR 30.00 as for 2023, one should take part in the fixed-price auction on that day at the latest to ensure that you can meet your submission obligation for 2022 on September 29, 2023 and the transfer deadlines taken into account.

If you have any questions, your contact person at Advantag will be happy to assist you.

(Average Quotes Exchange / OTC)
Instrument	08/09/23	15/09/23	Change
EUA (Spot-Market)	80.71 EUR	81.53 EUR	+0.82 EUR
EUA (December-2023-Future)	81.52 EUR	82.31 EUR	+0.79 EUR
VER (Natural Carbon Offsets)	1.70 USD	1.77 USD	+0.07 USD
VER (CORSIA eligible Carbon Offsets)	0.87 USD	0.71 USD	-0.16 USD
nEZ (German National Carbon Units)	30.00 EUR	30.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	90.41 USD	94.16 USD	+3.75 USD
EURO (Currency, Forex)	1.0701 USD	1.0658 USD	-0.0043 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

Dear Madam or Sir,

Last week, the first African climate summit took place in the Kenyan capital Nairobi in preparation for the UN climate summit taking place in Dubai at the end of November.

However, the continent, which is already particularly hard hit by the effects of climate change, also has great potential to curb global warming. Africa has large amounts of raw materials that are necessary for global decarbonization. In addition, the continent opens up a high potential for investors in renewable energies, if the participants have their way.

The African Development Bank estimates the annual costs of extreme weather events caused by human-caused climate change to be between $7 and $15 billion annually, with high potential for increases in the coming years.

In 2020, industrialized countries committed to raising 100 billion annually to finance climate protection projects in the global south. So far, however, these funds have only flowed to a significantly lesser extent due to the global crises that have taken place since then.

European emissions trading also showed a clearly bearish trend last week and lost more than four percent based on the weekly closing price. And this despite the fact that only 8,218,000 EUAs were auctioned over three days in the last trading week due to a meeting of the EEX working committee and the oil price (Brent) rose above the $90 mark. This week, a total of 14,601,000 emission allowances will be auctioned on all five trading days.

In addition, more moderate temperatures are expected in Central Europe in the coming week. If there is no technical counter-reaction, the EUAs will only find technical support around 77 euros. On the upside, resistance can be found in the area around 83 euros as well as the 200-day line, which is currently at 87.18 euros for the EUA-December-future.

(Average Quotes Exchange / OTC)
Instrument	01/09/23	08/09/23	Change
EUA (Spot-Market)	84.43 EUR	80.71 EUR	-3.72 EUR
EUA (December-2023-Future)	85.27 EUR	81.52 EUR	-3.75 EUR
VER (Natural Carbon Offsets)	1.98 USD	1.70 USD	-0.18 USD
VER (CORSIA eligible Carbon Offsets)	0.87 USD	0.87 USD	+0.00 USD
nEZ (German National Carbon Units)	30.00 EUR	30.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	88.84 USD	90.41 USD	+1.57 USD
EURO (Currency, Forex)	1.0785 USD	1.0701 USD	-0.0084 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

Dear Madam or Sir,

there is news related to global warming that you first must get used to. This includes, for example, an official curfew because it is raining. In summer, in Spain. An indefinite curfew was imposed yesterday for around 10,000 people in the Catalan municipality of Alcanar in the north-east of the country because of the risk of severe flooding. The population was advised to go to the upper floors of their houses if possible. Within only 24 hours, 215 litres of rain per square metre had fallen in Alcanar.

In Germany, the gap in the reduction of climate-damaging greenhouse gases, which the Federal Environment Agency (UBA) put at up to 331 million tonnes of CO2 equivalents in its projection report, could amount to “only” slightly 200 million tonnes in the best case, but only if the German government also consistently implements all the climate precautions adopted and planned by October 2022. These projections refer to Germany’s targets set out in the Climate Act.

However, there is a second gap, to which the Frankfurter Allgemeine drew attention last week. In addition to the national reduction targets, the states of the European Union have, as is well-known, approved to reduce their carbon emissions as a community by 55 percent until 2030. To this end, the EU states agreed, among other things, on the Effort Sharing Regulation (ESR). This regulation primarily covers the main polluters of emissions, namely transport and the building sector. It stipulates that large emitters like Germany must reduce their emissions from 2021 to 2030 by half. If an EU state fails to do so, it must buy emission allowances on the market. If these are not sufficiently available, penalties can be imposed. In relation to Germany, this means – with a projected gap of at least 152 million tonnes of CO2 – compensation payments in the double-digit billions.

To still meet the climate targets, the UBA and other experts called for, among other measures, a significant price increase for national emission certificates for fuels used in transport and buildings (nEZ). In a paper published in July, the UBA proposed raising the price of nEZ to 90 euros as early as next year. In more recent reports, a price of 200 euros per tonne is even assumed from 2025, in another it is 255 euros from 2027.

But whatever measures are taken to narrow the huge emissions reduction gap, they must be recognisably socially cushioned. And the earlier and more consistently this is started, the smaller the financial pressure wave that will come our way – not to mention the impact on our environment.

With the beginning of September, the period with reduced auction volumes ended last Friday. But this circumstance did not trigger any reaction on the European carbon market. In a flat range of about 3 euros, the price moved uninspired along the 86-euro mark. Now that most traders are returning to their desks, it will be interesting to see in which direction the market will break out of the narrowing price corridor.

(Average Quotes Exchange / OTC)
Instrument	25/08/23	01/09/23	Change
EUA (Spot-Market)	84.55 EUR	84.43 EUR	-0.12 EUR
EUA (December-2023-Future)	85.39 EUR	85.27 EUR	-0.12 EUR
VER (Natural Carbon Offsets)	1.65 USD	1.98 USD	+0.33 USD
VER (CORSIA eligible Carbon Offsets)	0.85 USD	0.87 USD	+0.02 USD
nEZ (German National Carbon Units)	30.00 EUR	30.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	84.61 USD	88.84 USD	+4.23 USD
EURO (Currency, Forex)	1.0798 USD	1.0785 USD	-0.0013 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