Dear Sir or Madam,
China will expand its emissions trading system to include steel, aluminium and cement production this year, and will incorporate more and more sectors into emissions trading in the years to come. The People’s Republic recognised the urgency of reducing greenhouse gases long ago. Most of the world’s wind turbines, often co-financed by voluntary carbon emissions trading, are in China.
And in Germany, the turnaround in transport policy is now showing the first visible signs of success. The Federal Network Agency reports more than 160,000 public charging points. Among other things, this has led to a 30.8% increase in the number of electric cars in February compared to the same month last year. Only Tesla is being shunned because of its CEO Elon Musk, especially in Germany.
But what does this mean in terms of CO2 emissions in the transport sector? The electric cars currently on the road in Germany save 1.4 billion litres of fossil fuels per year, which corresponds to CO2 emissions of more than 3.6 billion kilos or 3.6 million tonnes of CO2. Even if these cars were charged with the average German electricity mix – which is not the case in most cases – they would still save 2.8 million tonnes of CO2 annually, not to mention noise emissions and particulate matter that is not emitted in cities. And the electricity needed for the refineries is also reduced, which is around 10 Kilowatt hours per litre.
In the past trading week, which, in addition to the events in the White House in Washington, was also marked by above-average temperatures in Central Europe, EU emission rights fell significantly again in a weak energy market environment. Only a resistance line, which is currently around the 67 euro mark, was able to stop the December benchmark contract of EUAs at the end of the week, which is why EUAs closed higher on Friday.
Thus, the EUAs have almost given up the price gains they made in the rally that began on 18 December 2024, which is definitely not uninteresting for compliance buyers.
Whether the above-mentioned support holds this week depends on the market environment and political developments in Germany with regard to coalition talks, as well as overall global political developments, which are currently dominated by the US and its completely erratic president. Significantly colder temperatures in Central Europe this week should have a rather bullish effect.
This week, the Polish auction on Wednesday has been cancelled again, which is why a total of 11,343,500 EUAs will be auctioned on the other auction days on the EEX.
| (Average Quotes Exchange / OTC) | |||
| Instrument | 28/02/25 | 07/03/25 | Change |
| EUA (December-25-Future) | 71.00 EUR | 68.63 EUR | -2.37 EUR |
| nEZ (national Emission Allowances (D)) | 55.00 EUR | 55.00 EUR | +0.00 EUR |
| UKA (December-25-Future (UK)) | 42.87 GBP | 39.06 GBP | -9.99 GBP |
| UK Natural Gas (December-25-Future) | 111.41 GBP | 101.42 GBP | -1.84 GBP |
| ICE Brent Crude Oil (December-25-Future) | 69.72 USD | 67.88 USD | -1.74 USD |
| EURO (Forex) | 1.0376 USD | 1.0834 USD | +0.0458 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