Emissions Trading / Carbon Market News (29/04/2024)

Ladies and Gentlemen,

On Friday, the German Bundestag passed the highly controversial reform of the national Climate Protection Act at the request of the FDP.

Individual sectors, such as the transport sector, will now be allowed to miss their climate protection targets. Instead, the greenhouse gas reduction targets are no longer to be monitored retrospectively by sector, but rather for the future over several years regardless of the individual sectors.

If it becomes apparent that the reduction targets will not be achieved in two consecutive years and the savings targets for 2030 are at risk, the government will have to take corrective action. By 2030, emissions must have been reduced by 65% compared to 1990 and by 2040, the target is 88%; greenhouse gas neutrality is to be achieved five years later.

In the past trading week, prices in EU emissions trading moved back within the sideways upward channel and closed with a moderate gain compared to the previous week at EUR 69.92 in the benchmark future. This puts them exactly between the 38-day line, which currently stands at EUR 64.40, and the 200-day line, which currently stands at EUR 74.43, with both lines moving ever closer together. The price should not move out of this range in the coming days.

Due to the fact that the Labour Day falls on a Wednesday this week, on which the Polish auction would not have taken place as scheduled, a total of 11,094,500 EUAs will be auctioned on the remaining days this week.

    (Average Quotes Exchange / OTC)       
EUA (December-2024-Future)68.81 EUR69.92 EUR+1.11 EUR
VER (Natural Carbon Offsets)1.33 USD1.40 USD+0.07 USD
VER (CORSIA eligible Carbon Offsets)0.42 USD0.59 USD+0.17 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)86.54 USD88.06 USD+1.52 USD
EURO (Currency, Forex)1.0650 USD1.0690 USD+0.0040 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