Month: July 2024

Ladies and gentlemen,

The 2024 Summer Olympics are currently taking place in Paris. A mega event which, in addition to great sporting achievements, will also have a high carbon footprint. If the organizers have their way, the associated greenhouse gas emissions will be reduced by 50% compared to previous events.

The calculated carbon footprint of the last Olympic Games in Tokyo in 2021 amounted to 8,454,500 tons of CO2e (CO2 or its equivalent in other greenhouse gases). The approximately 10,000 athletes contributed 47,500 tons, the international staff of around 40,000 employees around 190,000 tons, the national Japanese staff of 39,000 contributors around 117,000 tons and the approximately 2,700,000 spectators caused 8,100,000 tons of CO2e.

In addition to the aforementioned reduction in emissions and the use of renewable energies and sustainable furniture such as beds made from recycled cardboard, the (still) unavoidable greenhouse gas emissions will be offset by international climate protection projects. To this end, the IOC has already acquired 1,472,550 tons of carbon credits from 13 projects. These are mainly projects in Africa, such as cookstoves, solar energy, mangrove protection, forestry and clean water projects from the Gold Standard and the Verified Carbon Standard.

If you also want to make your company or your event greenhouse-gas-neutral, you can determine and offset your carbon footprint directly here after taking reduction measures: www.treibhausgasreduktion.de. We would be happy to assist you.

The European market for carbon emission allowances recovered slightly last week and closed the week up a moderate 2.4%. The price managed to break through the 200-day line, which currently stands at EUR 68.22, on several occasions, but had to end the week below this resistance.

As there will be no halving of auction volumes in August this year, as in previous years, only the incipient buying by plant operators could send out further bullish signals, although many portfolio managers are currently on summer vacation and the 30 September delivery date still seems a long way off. It is therefore not unlikely that the share price will move somewhere between EUR 65 and EUR 70 this week.

(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

Dear Sir or Madam,

In a recent study, the University of Hamburg (UHH) has analysed the indirect effects of the EU Emissions Trading System on hazardous air pollutants. The findings of the Cluster of Excellence “Climate, Climatic Change and Society” (CLICCS) show that the European Emissions Trading System has both climatic and significant health benefits, while also saving billions in costs.

Since the introduction of emissions trading, 15 million tonnes of sulphur dioxide, one million tonnes of particulate matter and five million tonnes of nitrogen oxides have been reduced in the obligated sectors by 2021. The improved health situation creates an important additional incentive to support climate policy, as the University of Hamburg was able to show avoided health damage totalling more than 100 billion euros on the basis of official cost rates from the German Federal Environment Agency.

Prices in EU emissions trading moved sideways downwards again in the past trading week and closed exactly one cent below the 200-day line on Friday, which stands at EUR 69.20.

It will be interesting to see in the coming weeks when compliance buyers in the EU ETS will start to procure the volumes they have not yet purchased for 2023 on the market.

This week, a total of 13,404,500 EUAs will be auctioned on the EEX on all five trading days and it remains to be seen whether the price will manage to break through the 100-day line on a sustained basis.

(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

Dear Sir or Madam,

The effectiveness of EU emissions trading is repeatedly the subject of controversial debate. A current study now shows what the introduction of certificates since 2005 has achieved in various areas.

According to researchers from the Cluster of Excellence Climate, Climatic Change, and Society at the University of Hamburg, climate protection in the European Union has also directly benefited health. For example, emissions trading and the simultaneous tightening of air pollution control standards for large combustion plants in the EU have led to a drop in sulphur dioxide (by 39 per cent), particulate matter (by 28 per cent) and nitrogen oxides (by 14 per cent) in the air between 2005 and 2021.

The study thus shows that EU emissions trading is not only an effective instrument for reducing carbon emissions, but also offers significant additional benefits through the reduction of air pollutants. “The estimated health benefits could be equivalent to hundreds of billions of euros, even when the effects of simultaneously improved emission standards are taken into account,” explain the researchers.

A comprehensive policy assessment should therefore also take into account the additional benefits that go beyond CO2 reduction, such as reduced health damage from improved air quality. Communicating these benefits could help to increase public support for climate policy measures, as these additional benefits directly affect citizens and can be realised within Europe.

The past trading week began rather cautiously for the carbon market, which initially depressed prices. On Tuesday, however, the buy side took the initiative and invested a lot of money. As a result, the carbon price initially broke through the 70 euro mark without resistance and briefly rose to the 72 euro line on Wednesday. However, the publication of the Commitments of Traders Report (CoT Report) caused speculators to switch back to the more pessimistic side. The net short position rose again, whereupon the market followed the investment funds and finally levelled out in a range between 70 and 71 euros.

Thursday was an exciting day for the market as elections were held in the UK. The long-standing Conservative Tory government was voted out in a landslide, and the Labour government under Prime Minister Keir Starmer is now in power. The new British Foreign Secretary David Lammy has already spoken of a new beginning in relations with Europe. While the Conservatives have weakened climate protection in recent years, Labour stands for a more consistent climate protection policy. In the UK, developments on this issue therefore appear to be moving in a different direction to those within the EU.

The carbon market initially reacted very positively to the elections and pushed the price back above the EUR 71 mark, but then consolidated lower and closed at EUR 70.36 for the December future.

(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