Emissions Trading / Carbon Market News (13/05/2024)

Ladies and Gentlemen,

Peter Wiese is the environmental policy spokesman for the largest political group in the European Parliament, the Christian Democratic EPP, where he is responsible for emissions trading and climate protection.

In view of the current 30% drop in the price of EU emission allowances compared to last year’s highs, Mr Wiese explained last week that the EPP does not believe it would be desirable for prices to quickly rise back into the three-digit range due to weakening European industrial production.

According to Wiese, the decarbonisation of industry will not work quickly enough and a deindustrialisation of Europe would lead to Europeans losing their prosperity and Europe not being a role model for the rest of the world. For this reason, Liese and his parliamentary group have insisted that the main effects of the tightening of European climate targets in emissions trading should not materialise until 2027, such as a reduction in the issue of free certificates but front-loading of emission allowances.

However, he also believes that the politically desired slump in the rise in European carbon prices is only temporary and emphasised that no one should be under any illusions: “Those who invest in clean technologies now will benefit in the long term. Those who believe they can simply carry on as before in the coming decades will be penalised”.

Last week, the price of the EUA-benchmark-contract December 2024 broke through the 200-day line several times, but closed below this strong resistance at the end of each trading day.

The 200-day-line currently stands at EUR 73.22 and last week’s closing price is just over one euro away from it. It will be interesting to see whether the price remains within the current upward trend channel this week and thus possibly breaks through the 200-day line or whether it heads in the direction of the 38-day line, which is currently at 67.79 euros.

Following last week’s holiday-related lower auction volume of 8.5 million EUAs, 12,000,500 emission allowances will be auctioned on the EEX this week, of which 906,000 EUAs are for the aviation industry, although these can now also be used for stationary installations.

    (Average Quotes Exchange / OTC)       
EUA (December-2024-Future)72.01 EUR71.91 EUR-0.10 EUR
VER (Natural Carbon Offsets)0.96 USD1.01 USD+0.05 USD
VER (CORSIA eligible Carbon Offsets)0.38 USD0.44 USD+0.06 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)82.67 USD82.62 USD-0.05 USD
EURO (Currency, Forex)1.0757 USD1.0765 USD+0.0008 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