Emissions Trading / Carbon Market News (22/04/2024)

Dear Madam or Sir,

The “Correctiv” network has examined the offsetting measures of 150 gas suppliers in terms of their real benefit for the climate. In the process, 116 gas suppliers used offsetting projects that could not plausibly prove that the corresponding amount of CO2 is really being removed from the atmosphere in a sustainable manner.

According to Correctiv, this means that 10 million tons too little has been offset. Forest projects (REDD) in particular have been criticized for some time, as sustainable climate protection is doubted.

Deutsche Umwelthilfe has now called on 15 gas suppliers to stop advertising climate-neutral gas and accuses them of deceiving consumers.

Companies that advertise climate neutrality are therefore well advised when selecting climate protection projects to acquire certificates from projects that are unassailable in terms of their sustainability and real greenhouse gas reduction.

We will be happy to advise you and offset your greenhouse gas emissions, which cannot be avoided or can only be avoided with disproportionate effort, with CO2 certificates from leading standards such as the Gold Standard or Voluntary Carbon Standard.

The European CO2 compliance market broke through an important resistance level last week and the EUA December future rose to EUR 74.90, where it failed at another resistance line, which was just below the 200-day line currently at EUR 75.03.

Towards the end of the trading week, prices fell again and closed well below the EUR 70 mark. The coming days will show whether the price will make another attempt to break the 200-day line or move towards the 38-day line, which currently stands at EUR 62.88, which could then invite buying.

    (Average Quotes Exchange / OTC)       
Instrument12/04/2419/04/24Change
EUA (December-2024-Future)71.55 EUR68.81 EUR-2.74 EUR
VER (Natural Carbon Offsets)1.40 USD1.33 USD-0.07 USD
VER (CORSIA eligible Carbon Offsets)0.63 USD0.42 USD-0.21 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)89.65 USD86.54 USD-0.11 USD
EURO (Currency, Forex)1.0639 USD1.0650 USD+0.0011 USD

(The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. EUA, 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 (15/04/2024)

Dear Madam or Sir,

Last week, the European Parliament adopted a legal framework for the storage of CO2 in peatlands and forests.

There can be issued certificates for this, which industrial companies as well as agricultural and forestry businesses can trade if they allow carbon to be stored in peatlands through afforestation, foundation plants or carbon sequestration.

Industrial companies could generate income by permanently binding CO2 in rock (carbon capture and storage), for example in the building materials and cement industries.

The exact structure of carbon trading has not yet been clarified. In addition, the Council of Europe still has to give its formal approval.

In the past trading week, EUA emission allowances gained more than 18% due to the ongoing short covering and closed above the upward trend channel and the EUR 70 mark.

With a closing price of EUR 71.55, they closed near to an important resistance line and are now only around four euros away from the 200-day line.

In addition to the 200-day line, however, there is further resistance in the EUR 75 area, which is counteracting the current bullish momentum.

On the other hand, the price is finding support in the EUR 70 and EUR 65 areas; the 38-day line is currently at EUR 60.46.

As the Polish auction will not take place on Wednesday, a total of 11,094,500 EUAs will be auctioned on the EEX in Leipzig on the other four trading days of this trading week.

    (Average Quotes Exchange / OTC)       
Instrument05/04/2412/04/24Change
EUA (December-2024-Future)60.58 EUR71.55 EUR+10.97 EUR
VER (Natural Carbon Offsets)1.02 USD1.40 USD+0.38 USD
VER (CORSIA eligible Carbon Offsets)0.63 USD0.63 USD+0.00 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)90.52 USD89.65 USD-0.87 USD
EURO (Currency, Forex)1.0834 USD1.0639 USD-0.0195 USD

(The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. EUA, 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 (08/04/2024)

Dear Madam or Sir,

Companies covered by the European Emissions Trading System (EU ETS) recorded a 15.3% decrease in greenhouse gas emissions last year, according to preliminary figures from the European Commission.

The emissions of companies subject to trading obligations totalled 1,111 million tonnes of CO2 or its equivalent (CO2e) of other greenhouse gases in 2023. In the previous year 2022, this figure was 1,312 million tonnes of CO2e.

Prices for emissions in the EU ETS fell slightly last week based on the weekly closing prices, as they had already left the upward trend channel on Tuesday. On the last two trading days, however, prices recovered and closed above the 38-day line and the EUR 60 mark again.

Following the two trading weeks shortened due to the Easter holidays, a total of 13,404,500 EUAs will be auctioned on the European Energy Exchange on all five trading days this week.

The exceptionally mild temperatures in Central Europe and the high auction volume could have a bearish effect on the price trend.

The fact that the Easter holidays are over and most market participants are now back at work could support the price.

From a technical perspective, a return of the price to the previous upward trend channel is possible, but so is a dip below the EUR 60 line.

    (Average Quotes Exchange / OTC)       
Instrument28/03/2405/04/24Change
EUA (December-2024-Future)61.80 EUR60.58 EUR-1.22 EUR
VER (Natural Carbon Offsets)0.89 USD1.02 USD+0.13 USD
VER (CORSIA eligible Carbon Offsets)0.65 USD0.63 USD-0.02 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)86.82 USD90.52 USD+3.70 USD
EURO (Currency, Forex)1.0788 USD1.0834 USD+0.0046 USD

(The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. EUA, 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 (02/04/2024)

Dear Madam or Sir,

The consulting firm EY has calculated that Germany will lose around 50 billion in tax revenue between 2024 and 2030 as a result of the switch to electromobility.

In particular, this includes revenue from mineral oil tax and national carbon emissions trading.

However, it is not foreseeable how this revenue shortfall will be plugged; after all, electric cars run on the same electricity that households use and a steadily growing number of homeowners are refuelling their cars with solar power.

The rising prices in emissions trading will certainly compensate for some of this, but it is safe to assume that legislators will develop ideas to generate the missing revenue. 

The only dilemma is that they cannot ask drivers of electric vehicles to pay directly, as this would be counterproductive for climate protection and the achievement of the sector target.

Last week, prices for EU emission allowances remained stable in the upward trend channel that has been developing for more than a month and once again achieved a small gain of 0.5% at the end of the week.

If this trend channel continues to prove resilient, a trading range between around EUR 59.50 and EUR 67.70 is conceivable in the second week of Easter, with the 38-day line at EUR 59.53 also providing support. The 200-day line is still a long way off at EUR 76.81.

    (Average Quotes Exchange / OTC)       
Instrument22/03/2428/03/24Change
EUA (December-2024-Future)61.51 EUR61:80 EUR+0.29 EUR
VER (Natural Carbon Offsets)0.99 USD0.89 USD-0.10 USD
VER (CORSIA eligible Carbon Offsets)0.43 USD0.65 USD+0.22 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)85.01 USD86.82 USD+1.81 USD
EURO (Currency, Forex)1.0807 USD1.0788 USD-0.0019 USD

(The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. EUA, 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