Emissions Trading / Carbon Market News (03/06/2024)

Ladies and Gentlemen,

Last week, the German Federal Cabinet launched the controversial Carbon Storage Act and presented a corresponding draft bill.

By capturing CO2 in industrial processes and storing the greenhouse gas (CCS – Carbon Capture and Storage), greenhouse gas emissions in difficult and energy-intensive industrial sectors such as the cement and steel industries in particular are to be neutralised.

Environmental organisations warn of massive dangers for the ecosystem there, particularly in the case of storage in the North Sea.

In addition, the capture of CO2 with subsequent utilisation (CCU – Carbon Capture and Utilisation) is to be made possible.

It is still unclear how the project will be financed and whether it will pay for itself through the cost savings on CO2 certificates alone.

Over the past week, prices for emission allowances in the mandatory EU Emissions Trading Scheme have moved sideways in a relatively narrow range for the market between €72.95 and €76.25. They maintained a comfortable distance above the 38- and 200-day lines, which crossed last week as expected.

This means that the EUA are still in an upward trend channel and above an important support level of around €74.

Following the relatively low auction volume of just under eight million EUA in the previous week, the EEX will auction 13,404,500 EUA on all five trading days in the first week of June.

    (Average Quotes Exchange / OTC)       
EUA (December-2024-Future)75.61 EUR74.10 EUR-1.51 EUR
VER (Natural Carbon Offsets)1.02 USD1.04 USD+0.02 USD
VER (CORSIA eligible Carbon Offsets)0.40 USD0.41 USD+0.01 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)82.33 USD81.65 USD-0.68 USD
EURO (Currency, Forex)1.0847 USD1.0833 USD-0.0014 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