Dear Sir or Madam,
The prices in the European Emissions Trading System EU ETS show the current price for the emission of one tonne of CO2 or its equivalent (CO2e) in the sectors currently priced by the EU, but what happens to the revenues generated by the European primary market auctions on the European Energy Exchange EEX?
Among other things, the European Union is supporting 85 innovative ‘net-zero projects’ with a total of 4.8 billion euros. These projects receive funding from the so-called innovation fund and are intended to develop climate-friendly technologies and make them usable, which should contribute to the decarbonisation of Europe.
These projects are located in 18 countries and are to be implemented by 2030, saving 476 million tonnes of CO2e in the first 10 years. They are in areas such as renewable energies, energy storage and mobility.
Last week, prices in the EU ETS recovered significantly compared to the previous week. After Monday was still bearish, the price rose to the 200-day line, particularly on Wednesday, and on Thursday this resistance and the 38-day line were also easily overcome.
After the 60-euro mark proved stable at the beginning of October and prices moved well away from it, some market participants closed their short positions and this short covering supported the 7.5% price increase on a weekly closing price basis.
However, since nothing has changed fundamentally, it is relatively likely that the market will calm down again in the coming week and tend more towards the 200-day line, which is currently at 64.91. It remains to be seen how strong it will prove to be as possible support.
After the 14,582,500 EUAs auctioned on the EEX last week, only 11,749,000 EUAs will be auctioned over four trading days in the new trading week, as the Polish auction is not scheduled to take place on Wednesday.
(Average Quotes Exchange / OTC) | |||
Instrument | 18/10/24 | 25/10/24 | Change |
EUA (December-2024-Future) | 62.28 EUR | 66.97 EUR | +4.69 EUR |
VER (Natural Carbon Offsets) | 0.34 USD | 0.51 USD | +0.17 USD |
VER (CORSIA eligible Carbon Offsets) | 0.42 USD | 0.43 USD | +0.01 USD |
nEZ (German National Carbon Units) | 45.00 EUR | 45.00 EUR | +0.00 EUR |
ICE Brent Crude Oil (Benchmark Future) | 73.46 USD | 76.05 USD | +2.59 USD |
EURO (Currency.. Forex) | 1.0866 USD | 1.0795 USD | -0.0071 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,
Your Advantag – Team