Emissions Trading / Carbon Market News (27/01/2025)

Dear Sir or Madam,

Greenhouse gas emissions in Germany fell by 10.3% or 77 million tonnes in 2024 compared to the previous year, marking the sharpest decline since 1990.

In addition to the expansion of renewable energies, this was due to the drop in demand for energy, which can be attributed to the crisis-ridden German economy.

Emissions from energy generation fell by 54.1 million tonnes (21.1%), and the building sector also emitted 7.6 million tonnes (6.9%) less. Even the transport sector emitted 1.7% or 2.5 million tonnes less.

The above two sectors are priced by national emissions trading under the German BEHG, and the increased use of renewable energies in buildings, as well as electric mobility, has put the brakes on the previously steady increase.

But solar energy has also eclipsed coal-fired power generation across Europe for the first time.

Last week, the rally in EU emission rights continued, with EUAs rising by a further 3.0%. They closed at 81.67 for the benchmark contract on Friday, well above the 80-euro mark.

This week, a total of 11,343,500 EUAs will be auctioned at the EEX in Leipzig. Due to the regular absence of the Polish auction on Wednesday, there will only be four days of auctions.



  (Average Quotes Exchange / OTC)
       
Instrument17/01/2524/01725Change
EUA (December-25-Future)79.26 EUR81.67 EUR+2.41 EUR
nEZ (national Emission Allowances (D))55.00 EUR55.00 EUR+0.00 EUR
UKA (December-25-Future (UK))31.54 GBP35.12 GBP+3.58 GBP
UK Natural Gas (December-25-Future)117.96 GBP116.76 GBP-1.20 GBP
ICE Brent Crude Oil (December-25-Future)73.80 USD73.31 USD-0.49 USD
EURO (Forex)1.0272 USD1.0494 USD+0.0222 USD

(EUA. UKA, Natural Gas, 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 emission allowances 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

Compensation of carbon footprint 2024

Advantag GmbH calculated its carbon footprint for the year 2024, which included all emissions (Scope 1 to Scope 3). Advantag has also offset all of its employees’ emissions.

The Jiangdsu Dongtai Phase II wind power project was selected for this purpose.

China consumed primary energy of just under 171 exajoules in 2023. In a global comparison, China was therefore the largest consumer of energy worldwide. Around 60% of this is still generated from fossil fuels, but 18% comes from hydropower and around 20% from renewable energies, such as these wind turbines. A good 10% of the energy generated in China now comes from wind turbines such as the project in Jiangsu, which is located in the eastern Chinese province of Jiangsu. The output was maximised by selecting the most suitable turbines based on an optimal turbine distribution in the wind farm and taking into account the specific turbine characteristics. The project consists of 100 wind turbines with a net capacity of 2,000 kW each, supplying 406.0201 MWh of electricity per year to the eastern Chinese power grid. The project results in annual savings of around 338,010 tonnes of CO2e due to the climate-neutral generation of electricity.

The project will lead to annual savings of around 338,010 tonnes of CO2e due to the climate-neutral generation of electricity. The project also helps the local government to promote economic development and improve air quality, as a large proportion of the energy required there previously came from coal combustion.

The project has the Verified Carbon Standard (VCS) and has an extremely positive impact on the environment (offsetting fossil fuel consumption) and society (providing jobs, infrastructure development).

The revenue from the sale of these Verified Carbon Units (VCUs) from this project has provided the necessary financial incentive to realise the investment in this emission reduction project. Without the income from the certificates, this climate protection project would not have been developed and could not be continued, which would further accelerate global warming. By offsetting by cancelling the quantity of certificates you wish to purchase, you are helping to finance this project and thus relieving the burden on the climate at a global level. Each VCU certificate, which certifies the avoidance of the emission of one tonne of CO2, saves the emission of greenhouse gases, as these are not released into the atmosphere in the first place.

Emissions Trading / Carbon Market News (20/01/2025)

Dear Sir or Madam,

Today, Donald Trump begins his second term in the White House in Washington D.C. as President of the United States of America, and he has already announced his intention to end various climate and environmental protection laws. It remains to be seen what will actually be implemented. It will certainly be entertaining when you remember his first term in office and now he also has billionaire Elon Musk in tow and you instinctively wonder who is the boss here. Since both of them openly live out their narcissism, there are already bets on how long they will remain ‘best friends’.

Last Wednesday, the German Bundestag held a session in which the Energy Committee discussed the adaptation of the German Greenhouse Gas Emissions Trading Act (TEHG) to European guidelines (EU ETS II). The experts welcomed the adaptation, but called for more conformity with the EU.

Till Jenssen from the German Association of Cities emphasised the necessity of a sufficiently high CO2 price and targeted climate funding to relieve the burden on consumers. Michael Pahle from the Potsdam Institute for Climate Impact Research called the amendment a ‘historic step’ and highlighted Germany’s pioneering role.

The company representatives called for more planning security. Martin Kaspar from the Thüga-Aktiengesellschaft and Carsten Rolle from the Federation of German Industries emphasised the urgency of a rapid implementation of the amendment. Maximilian Rinck from the BDEW also advocated a rapid implementation of the changes.

Another point was the planned inclusion of waste incinerators in the emissions trading. Nadine Schartz from the Landkreistag (German County Association) and Holger Thärichen from the German Association of Local Utilities rejected this and called for a uniform decision throughout Europe.

Prices in the EU ETS I were noticeably bullish again last week, closing the week up 5.9% and just missing the 80-euro mark. During the course of Friday, this level was briefly exceeded with a high of 80.50, but by the end of trading, the price of the December EUA futures contract was unable to hold above the 80 mark.

This week, a total of 13,416,000 EUAs will be offered at the European Energy Exchange EEX in the auctions, which will take place on all five trading days.



  (Average Quotes Exchange / OTC)
       
Instrument10/01/2517/01/25Change
EUA (December-25-Future)74.85 EUR79.26 EUR+4.41 EUR
nEZ (national Emission Allowances (D))55.00 EUR55.00 EUR+0.00 EUR
UKA (December-25-Future (UK))34.88 GBP31.54 GBP-3.34 GBP
UK Natural Gas (December-25-Future)112.56 GBP117.96 GBP+5.60 GBP
ICE Brent Crude Oil (December-25-Future)74.27 USD73.80 USD-0.47 USD
EURO (Forex)1.0242 USD1.0272 USD+0.0030 USD

(EUA. UKA, Natural Gas, 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 emission allowances 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

Emissions Trading / Carbon Market News (13/01/2025)

Dear Sir or Madam,

On Wednesday, an expert hearing on the TEHG (Greenhouse Gas Emissions Trading Act) will take place in the German Bundestag, which will focus on the introduction of the EU Emissions Trading System EU ETS II in 2027 for the building and transport sectors and the associated transition of national emissions trading to European trading.

In this context, at the end of November, the Bundesrat (Federal Council) had submitted a proposal to auction national emission certificates at a fixed price of EUR 65.00 per tonne on the EEX in 2026 as well. The current BEHG (Fuel Emissions Trading Act) stipulates that the fixed-price phase will expire next year and auctions should take place in a price range of EUR 55.00 to EUR 65.00.

Since the obligated companies would have to submit emission reports for EU ETS II by 30 April 2025 in order to implement the EU requirements, this deadline has now been suspended because the TEHG amendment has not yet been adopted. A new deadline is unknown at the moment.

Last year, the German government received a total of €18.5 billion (previous year: €18.4 billion) through CO2 emissions trading. These revenues are channelled entirely into the KTF (Climate and Transformation Fund). Auction revenues in the EU ETS amounted to EUR 5.5 billion (previous year: EUR 7.7 billion), while national emissions trading (nEHS) generated EUR 13 billion (previous year: EUR 10.7 billion).

The decline in the EU ETS is mainly due to the significantly lower average price of EUR 65.00 (2023: EUR 83.66) for emission allowances. The increase in revenue in the nEHS was due, on the one hand, to the rise in prices from EUR 30.00 to EUR 45.00 and, on the other hand, to the reduction in the number of emission rights to 85 million in 2024 (previous year: 92 million EUA).

Last week, prices in the EU ETS were 1.4% lower than in the previous week, due to profit-taking after the rise in the previous weeks and the weakening market environment in the energy sector.

After the auctions on the EEX started again last week, 11,343,500 EUAs will be auctioned this week, which corresponds to an increase of 11.5% compared to the previous week.

Dear readers, up to now, we have indicated the prices for wholesale quantities of voluntary emission rights (VER) in our stock market prices listed below. However, as these have proven to be of little significance in the real trading of CO2 certificates, we will now show you the general market environment. Instead, you will now find the price development of British emission rights (UKA / United Kingdom Allowances) and gas (UK natural gas) alongside the prices for Brent Crude Oil and the exchange rate for the euro to the US dollar, which have been shown for years.



  (Average Quotes Exchange / OTC)
       
Instrument03/01/2510/01/25Change
EUA (December-25-Future)75.94 EUR74.85 EUR-1.09 EUR
nEZ (national Emission Allowances (D))55.00 EUR55.00 EUR+0.00 EUR
UKA (December-25-Future (UK))36.61 GBP34.88 GBP-1.73 GBP
UK Natural Gas (December-25-Future)117.34 GBP112.56 GBP-4.78 GBP
ICE Brent Crude Oil (December-25-Future)72.97 USD74.27 USD+1.33 USD
EURO (Forex)1.0307 USD1.0242 USD-0.0065 USD

(EUA. UKA, Natural Gas, 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 emission allowances 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

Emissions Trading / Carbon Market News (06/01/2025)

Dear Sir or Madam,

The old year seems to have flown by and here we are in 2025.

But what’s new in the field of carbon emissions trading? The price per tonne of CO2 in the national German emissions trading scheme has risen from 45 to 55 euros net, an increase of 22.22% after a 50% increase in the previous year.

In addition, due to the new elections in Germany on 23 February 2025, the start of auctions in national emissions trading has been postponed from mid-January to the second quarter of 2025; it will probably not be possible to participate in an auction here before May. We will keep you informed.

In the EU Emissions Trading System (EU ETS), however, auctions will resume tomorrow and a total of 10,170,500 EUAs from the contingents of the EU, Poland and Germany will be auctioned on all remaining trading days this week.

But there is also a lot going on in emissions trading outside the EU. Dubai is introducing a digital platform for aviation emission certificates (CORSIA) and since the United Arab Emirates also wants to be climate neutral by 2050, a reporting requirement will come into force in May for companies that emit more than 500,000 tonnes of CO2. This is intended to be a preliminary stage for an emissions trading system that follows the EU’s cap-and-trade mechanism.

In the aforementioned election campaign in Germany, some parties want to blame the miserable economic situation in Germany on climate protection. Professor Ottmar Edenhofer, climate economist and director of the Potsdam Institute for Climate Impact Research (PIK), has clearly shown that this is not the case.

In an interview with the Neue Osnabrucker Zeitung, he explained that a quarter of all global emissions are already priced and that 30% of the world’s regions have managed to decouple their economic growth from emissions growth.

In the new year, prices for greenhouse gas emissions in the EU ETS rose significantly again. Based on the weekly closing prices, the benchmark future for December 2025 rose by a further 6% over the four trading days, with EUAs managing to return above the 75-euro mark.

The reasons for this included a rise in the gas price due to the alleged intentional destruction of the Estlink2 power cable and the restart of auctions this week on the EEX.

If you need the year-end-quotes 2024 for your bookkeeping, you can find it on our website.

      (Average Quotes Exchange / OTC)       
Instrument27/12/2403/01/25Change
EUA (December-2025-Future)71.56 EUR75.94 EUR+4.38 EUR
VER (Natural Carbon Offsets)0.44 USD0.40 USD-0.04 USD
VER (CORSIA eligible Carbon Offsets)0.40 USD0.44 USD+0.04 USD
nEZ (German National Carbon Units)45.00 EUR55.00 EUR+10.00 EUR
ICE Brent Crude Oil (Benchmark Future)73.80 USD76.88 USD+3.08 USD
EURO (Currency.. Forex)1.0421 USD1.0307 USD-0.0114 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