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)       
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