Emissions Trading / Carbon Market News (03/04/2023)

Dear Madam or Sir,

Last week, as part of the “Fit for 55” climate package, the EU Parliament and the EU member states agreed to increase the share of renewable energies in the EU from 32% to 42.5% by 2030. The rate is currently around 22%.

In addition, partial targets were agreed for the building, transport and industry sectors in order to advance the integration of renewable energies here as well.

In addition, last week the European Commission outlined the plan to start the early auctioning of EU emission allowances as part of the REPowerEU initiative from July 2023. This so-called “frontloading” should offer 16.5 million more EUAs in the auctions this year.

Analysts had previously speculated that this process could start sooner and assumed a volume of 30-40 million additional EUAs for 2023.

The market took this reduction bullish and reacted visibly positively to it, with the December benchmark contract of the EUAs gaining 4.28% on a weekly closing basis and closing well above the EUR 90 mark again.

In the new trading week, prices could continue to be bullish, as only 7,227,000 EUAs are auctioned on three trading days due to Good Friday. In the next week, due to Easter Monday, a total of 9,433,500 EUAs will be auctioned at the Leipzig EEX on four trading days.

The new auction calendar with the new auction volumes should be published in the coming weeks.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)86.32 EUR90.48 EUR+4.16 EUR 
EUA (December-2023-Future)87.65 EUR91.93 EUR+4.28 EUR 
VER (Natural Carbon Offsets)3.04 USD3.39 USD+0.35 USD 
VER (CORISA eligible Carbon Offsets)2.06 USD2.07 USD+0.01 USD 
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR 
ICE Brent Crude Oil (Benchmark Future)74.90 USD79.87 USD+4.97 USD 
EURO (Currency, Forex)1.0735 USD1.0841 USD+0.0106 USD 

(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask has usually in Spot Market a visible spread. The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. 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