Category: Carbon Market News

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Emissions Trading / Carbon Market News (28/10/2024)

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)       
Instrument18/10/2425/10/24Change
EUA (December-2024-Future)62.28 EUR66.97 EUR+4.69  EUR
VER (Natural Carbon Offsets)0.34 USD0.51 USD+0.17 USD
VER (CORSIA eligible Carbon Offsets)0.42 USD0.43 USD+0.01 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)73.46 USD76.05 USD+2.59 USD
EURO (Currency.. Forex)1.0866 USD1.0795 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

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Emissions Trading / Carbon Marke News (14/10/2024)

Dear Sir or Madam,

After more than 140 years, the United Kingdom has become the first European industrialised country and the first G7 country to phase out the generation of electricity from coal, which is particularly harmful to the climate. On 30 September 2024, the last coal-fired power plant in Ratcliffe-on-Soar was shut down.

This was possible specifically because the UK continues to use nuclear power as a bridging technology.

And France, too, emitted about 3.6% fewer greenhouse gases in the first half of 2024, partly due to the expansion of renewable energies and the optimisation of nuclear energy use.

But more and more energy-intensive technology companies such as Microsoft, Google and Amazon are also increasingly relying on nuclear power to meet the ever-growing energy needs of their data centres and thus achieve their own emissions reduction targets. In particular, artificial intelligence and cloud computing have significantly increased the demand for electricity in this industry.

However, Germany also emitted around 40 million tonnes less CO2 in the energy sector in the first half of the year, due to both the expansion of renewable energies and the looming recession.

And it is precisely these developments that have led to the fact that in the past few months, rather bullish tendencies have been seen in the market for CO2 emission rights in the EU ETS since the highs in the triple digits in spring 2023.

However, in the past trading week, the 60-euro mark proved stable and although the price was briefly below 60 on Wednesday, a small rally set in, which ended on Thursday in the area of the 200-day line. On a weekly closing price basis, this resulted in a gain of just over 4%.

Should there be no further fundamental impulses, the market should move in the new trading week in the area of 60 euros and the 200-day line, which currently stands at 65.19.

This week, a total of 12,810,000 EUA will be auctioned on the EEX on all five trading days, which corresponds to a decrease of 12.15% compared to the previous week.

    (Average Quotes Exchange / OTC)       
Instrument04/10/2411/10/24Change
EUA (December-2024-Future)62.05 EUR64.62 EUR+2.57 EUR
VER (Natural Carbon Offsets)0.33 USD0.33 USD+0.00 USD
VER (CORSIA eligible Carbon Offsets)0.38 USD0.43 USD+0.05 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)78.74 USD79.38 USD+0.64 USD
EURO (Currency.. Forex)1.0965 USD1.0931 USD-0.0034 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

Posted on

Emissions Trading / Carbon Market News (07/10/2024)

Dear Sir or Madam,

The Austrian National Bank (Oesterreichische Nationalbank) has used a simulation model to examine the effects of carbon prices on gross domestic product (GDP) growth in the European Union and has also determined what the price of emission rights would have to be to avoid further measures to achieve the EU’s ‘Fit-for-55’ target.

Based on the current price, further measures such as the introduction of higher energy efficiency standards would have to be implemented to achieve the EU’s self-imposed climate targets. However, to avoid further measures altogether, the price of CO2 emissions would have to rise to EUR 668.00 per tonne of CO2 or its equivalent of other greenhouse gases (CO2e) by 2030.

According to the Oesterreichische Nationalbank, such a high price would result in the gross domestic product (GDP) in the euro area in 2030 being 2.2% lower than it would have been without a high carbon price, while consumer prices would be 6.4% higher. However, economists consider these effects to be negligible because they would be spread over a period of six years.

We are currently well away from prices above the 600-euro mark in the EU ETS; the prices for EU emission rights are currently around a tenth of that. After a weekly gain of 4.6 per cent in the previous week, EUA fell by 6.5 per cent this week, despite the significant rise in oil prices due to the escalation in the Middle East. With a low of 61.41 last Friday, a six-month low was also reached.

This week, a total of 14,582,500 EUA will be auctioned on all five trading days at the Leipzig EEX, which corresponds to an increase of 15% compared to the previous week.

    (Average Quotes Exchange / OTC)       
Instrument27/09/2404/10/24Change
EUA (December-2024-Future)66.33 EUR62.05 EUR-4.28 EUR
VER (Natural Carbon Offsets)0.33 USD0.33 USD+0.00 USD
VER (CORSIA eligible Carbon Offsets)0.37 USD0.38 USD+0.01 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)71.99 USD78.74 USD+6.75 USD
EURO (Currency.. Forex)1.1166 USD1.0965 USD+0.0201 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

Posted on

Emissions Trading / Carbon Market News (23/09/2024)

Dear Sir or Madam,

According to a study by the German Bundesbank, companies in Germany have not yet relocated their production sites due to the EU Emissions Trading System (EU ETS), as the Bundesbank stated in its September monthly report.

The Bundesbank points out that companies with high greenhouse gas emissions already had an above-average presence outside of Europe before the 2013 / 2021 EU ETS reforms. In addition, companies in the EU have visibly reduced their greenhouse gas emissions more since 2014.

Furthermore, the EU has responded to the different carbon pricing outside the EU with the CBAM (Carbon Borderline Adjustment Mechanism), which was launched last year.

Prices in the EU ETS also fell by a good 2.5% in the past trading week, reaching a new five-month low. The persistently weakening economy in Germany is particularly noticeable here.

At a global level, demand for oil and gas appears to have increased again, although EUA prices have currently decoupled from this.

In this trading week, a total of 14,582,500 emission allowances will be auctioned on the European Energy Exchange on all five trading days, which corresponds to an increase of 15.2% compared to the previous week.

    (Average Quotes Exchange / OTC)       
Instrument13/09/2420/09/24Change
EUA (December-2024-Future)64.99 EUR63.39 EUR-1.60 EUR
VER (Natural Carbon Offsets)0.27 USD0.30 USD+0.03 USD
VER (CORSIA eligible Carbon Offsets)0.23 USD0.24 USD+0.01 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)72.49 USD74.94 USD+2.45 USD
EURO (Currency.. Forex)1.1071 USD1.1163 USD+0.0092 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

Posted on

Emissions Trading / Carbon Market News (02/09/2024)

Dear Sir or Madam,

The German Federal Ministry for Economic Affairs and Energy has announced funding of 3.3 billion euros until 2030 for the decarbonisation of medium-sized companies. In particular, investments in innovative technologies as well as research and development are to be promoted.

The first call for funding is to be issued this month, with small and medium-sized companies in particular then having three months to submit their projects.

Funding opportunities are to start from a project size of TEUR 500.0 for small and medium-sized companies and from TEUR 1,000.0 for large companies. If the project volume exceeds EUR 15,000,000, the respective federal state is to provide 30% co-financing.

September has begun and 30 September 2024 is the last day for submitting emission allowances in the EU Emissions Trading System EU ETS and in the German national emissions trading nEHS.

The last date on which German national certificates valid for 2023 can be purchased at the fixed price of EUR 30.00 per national emission allowance (nEZ23) on the EEX is Thursday, 19 September 2024. Even if you need us to procure certificates for you and your 10% buy-quota has been exhausted, we recommend that you also do so around this time due to the transfer deadlines in the registry, in order to avoid risking any penalties.

This week also marks the first time that the slightly increased auction volume for EU emission rights will come into effect on the EEX. Due to the regular absence of the Polish auction on Wednesday, a total of 11,749,000 EUAs will be auctioned this week, which is 12.6% less than in the previous week.

Next week, including the Polish Wednesday auction of 2,833,500 EUAs, the total will be 14,582,500 emission rights. That is 24.1% more than this week and 8.4% more than in the last week of August.

In the past trading week, prices slowly moved downwards in the rough area around the 38-day line and fell by 1.2% on a weekly closing price basis. The 38-day line is currently at 70.64 and the closing price on Friday was back above the 70-euro mark, after falling below it during the course of the day with a low of 69.96.

If the 70-euro mark does not prove to be a stable support, the price could also trend towards the 200-day moving average, which is currently trading at 66.74. If the 70-euro mark holds and the market can break through the 38-day line again, then prices in the direction of the 75-euro mark are also possible.

Depending on how many companies still need to cover themselves shortly before the deadline, the trend in the coming weeks should go in one direction or another.

    (Average Quotes Exchange / OTC)       
Instrument23/08/2430/08/24Change
EUA (December-2024-Future)71.13 EUR70.30 EUR-0.83 EUR
VER (Natural Carbon Offsets)0.45 USD0.38 USD-0.07 USD
VER (CORSIA eligible Carbon Offsets)0.21 USD0.23 USD+0.02 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)79.16 USD77.77 USD-1.39 USD
EURO (Currency.. Forex)1.1119 USD1.1048 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,

Advantag GmbH