Month: August 2024

Dear Madam or Sir,

The Taiwan Carbon Solutions Exchange, TCX for short, was opened in Taiwan at the end of last year. So far, only transactions with international carbon credits have been carried out here. The first national Taiwanese emission allowances are now expected to be traded here from October.

There will be three different types of certificates: provisional emission allowances, statutory emission allowances and voluntary emission reduction certificates. These can also be traded in three different ways. Either the buyer determines the price, the buyer or seller agree on a price to be communicated to the Ministry of the Environment or auctions are organised with a minimum price. TCX charges a fee of 5% of the contract volume for all transactions.

Here too, the introduction of the CBAM border adjustment mechanism in the European Union is likely to have been a decisive factor, as in China, where emissions trading is now also to be expanded, as previously only energy suppliers were affected.

The EU would do well to work consistently on a global emissions trading market under the leadership of the European Union before the Asian countries join forces here and claim the leading global position solely on the basis of their trading volume.

Prices in European Emissions Trading System were cautiously bullish last week, but remained stable above the EUR 70 mark. The EUAs of the benchmark December 2024 contract ended the last trading week up 3.4% and closed at a price of EUR 72.52 per tonne of CO2 or its equivalent in other greenhouse gases.

Due to the missing Polish auction this Wednesday, only 11,094,500 EUAs will be auctioned on the Leipzig EEX in the new trading week.

(Average Quotes Exchange / OTC)
Instrument	09/08/24	16/08/24	Change
EUA (December-2024-Future)	70.14 EUR	72.52 EUR	+2.38 EUR
VER (Natural Carbon Offsets)	0.48 USD	0.44 USD	-0.04 USD
VER (CORSIA eligible Carbon Offsets)	0.14 USD	0.24 USD	+0.10 USD
nEZ (German National Carbon Units)	45.00 EUR	45.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	80.32 USD	80.01 USD	-0.31 USD
EURO (Currency.. Forex)	1.0914 USD	1.1026 USD	+0.0112 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 GmbH

Dear Sir or Madam,

The European Commission has decided that EU member states will be allowed to auction around 4% more European Emission Allowances (EUAs) in the period from September to December 2024 than in the same period last year. The reason for this was the cost of switching the energy supply in order to end dependence on Russia.

A few days ago, the European Energy Exchange (EEX) published its current auction calendar for the period from September to December of this year.

This means that 13,404,500 EUAs will be auctioned on all five trading days this week, when the Polish primary market auction takes place on a regular basis, compared to 14,582,500 in a comparable week in September.

In addition, there will only be a few auction-free days, as in the weeks in which there are usually no Polish auctions on Wednesdays, either EU auctions are held or Northern Ireland auctions.

In total, 8.2 million more EUAs will be auctioned than was planned in the original auction calendar, which would mean additional revenue of 574.0 million euros at the current price of around 70 euros.

The last auction of 3,248,000 EUAs this year will take place on Monday, 16 December 2024.

In the previous trading week, EUA prices repeatedly found support at the 200-day and 38-day lines, although they were only able to overcome the strong resistance of a sideways downward resistance line intraday.

The 38-day line is currently turning slightly upwards at EUR 69.55, while the 200-day line is still showing bearish tendencies and currently stands at EUR 67.44.

If the EUAs are unable to sustainably break through the resistance of the sideways downwards line in the new trading week, the price will fall below the EUR 70 mark again and probably test the support of the 38 and 200-day lines.

(Average Quotes Exchange / OTC)
Instrument	02/08/24	09/08/24	Change
EUA (December-2024-Future)	70.58 EUR	70.14 EUR	-0.44 EUR
VER (Natural Carbon Offsets)	0.78 USD	0.48 USD	-0.30 USD
VER (CORSIA eligible Carbon Offsets)	0.18 USD	0.14 USD	-0.04 USD
nEZ (German National Carbon Units)	45.00 EUR	45.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	78.17 USD	80.32 USD	+2.15 USD
EURO (Currency.. Forex)	1.0911 USD	1.0914 USD	+0.0003 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

Dear Sir or Madam

The German Federal Ministry of Economics and Climate Protection (BMWK) has presented a 142-page draft bill to amend the Greenhouse Emissions Trading Act (TEHG).

According to the draft, all installations such as stationary installations, aircraft, ships, combustibles and fuels are to be regulated in one law in future. For the years 2024 to 2026, however, the changes are to be implemented in the existing legal structure.

In addition, fossil fuels in agriculture, forestry, rail transport and the incineration of waste are to be included in future. Biomass plants, some of which have been able to make a profit from the allocation of free allowances to date, will no longer be subject to reporting or surrender obligations and will therefore no longer receive free allocations.

It remains to be seen what changes will be made in the committees before the amendment to the TEHG becomes legally binding.

In China, 2,257 power generation plants are currently priced via the national emissions trading scheme. The price for a tonne of CO2 there is currently the equivalent of EUR 11.70 and has risen by 15.1% since the beginning of the year. Since the start of CO2 emissions trading in China, the price has almost doubled.

In the short term, China plans to use the now established emissions trading system to reduce emissions in line with the EU emissions trading scheme. To this end, emitters from other sectors will be successively subjected to the trading obligation, which is certainly also a success of the EU’s CBAM (Carbon Borderline Adjustment Mechanism), as otherwise the pricing of imports from China would be almost entirely the responsibility of the EU.

And prices in EU emissions trading are still far removed from Chinese prices. In the last trading week, they rose by 4% and closed above the EUR 70 mark per tonne of CO2.

After overcoming the 200-day line, which currently stands at EUR 67.80, the 38-day line, which currently stands at EUR 69.51, was also overcome. The bullish trend was only halted by a resistance line, which is currently in the region of EUR 71.30.

However, depending on how the current geopolitical tensions in the Middle East develop, the share price could either overcome the resistance line and continue towards the EUR 80 mark or fall back to the EUR 65 region.

With the exception of Wednesday, a total of 11,094,500 EUA will be auctioned on the EEX in Leipzig this week.

(Average Quotes Exchange / OTC)
Instrument	26/07/24	02/08/24	Change
EUA (December-2024-Future)	67.87 EUR	70.58 EUR	+2.71 EUR
VER (Natural Carbon Offsets)	0.98 USD	0.78 USD	-0.20 USD
VER (CORSIA eligible Carbon Offsets)	0.20 USD	0.18 USD	-0.02 USD
nEZ (German National Carbon Units)	45.00 EUR	45.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	80.63 USD	78.17 USD	-1.06 USD
EURO (Currency.. Forex)	1.0855 USD	1.0911 USD	+0.0056 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