Category: Carbon Market News

Dear Sir or Madam,

The COP29 World Climate Conference in Baku, Azerbaijan, ended last weekend after an extension. The two most important results are, firstly, that the industrialised countries are to provide a total of 300 billion US dollars a year until 2035 for climate protection and adaptation to the consequences of climate change. Secondly, the parties agreed on new rules for global emissions trading, whereby companies and states can offset their greenhouse gas emissions by financing climate protection projects in other regions.

But the European Emissions Trading System (EU ETS) is also helping to finance climate protection: the EU has given Greece the green light for its decarbonisation fund, which will be financed with 25 million EUAs that were not allocated to the country in the previous phase of the EU ETS. The proceeds from this should pave the way for the climate neutrality of the Greek islands.

EU ETS prices temporarily exceeded the 70-euro mark last week. One of the reasons for this was the European Commission’s decision not to increase the volume of the approximately 86.7 million allowances to be auctioned under REPowerEU in the near term, as the market had expected, although the price in recent months was below the target price of more than 70 euros.

We would like to point out once again that only four auctions of national emission allowances valid for 2024 will take place in the next two weeks; the last auction will be on Thursday, 5 December 2024. After that, regular purchases on the EEX will only be possible for 10% of the quantity that will be on your registry account on 31 December 2024.

In agreement with the Federal Ministry for Economic Affairs and Climate Protection, the German Emissions Trading Authority has now decided to postpone the start of fixed-price auctions of national emission allowances on the EEX to 2025. The background to this is the ongoing parliamentary legislative process to amend the Greenhouse Gas Emissions Trading Act (TEHG-Europarechtsanpassungsgesetz 2024).

(Average Quotes Exchange / OTC)
Instrument	15/11/24	22/11/24	Change
EUA (December-2024-Future)	68.01 EUR	69.27 EUR	+1.26 EUR
VER (Natural Carbon Offsets)	0.24 USD	0.32 USD	+0.08 USD
VER (CORSIA eligible Carbon Offsets)	0.21 USD	0.25 USD	+0.04 USD
nEZ (German National Carbon Units)	45.00 EUR	45.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	71.20 USD	74.59 USD	+3.39 USD
EURO (Currency.. Forex)	1.0540 USD	1.0414 USD	-0.0126 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

Dear Sir or Madam,

On the first day of this year’s UN Climate Change Conference COP29 in Azerbaijan, almost 200 countries agreed on new rules for global emissions trading, even though many of the framework conditions and rules still need to be worked out.

This emissions trading should enable states and companies to purchase CO2 certificates from climate protection projects and thereby offset their emissions. As with voluntary emissions trading, a certificate is generated for each tonne of CO2 or its equivalent of greenhouse gases avoided, which can then be traded and retired.

These rules have been in the works since the 2015 Paris Agreement on climate change, and since they were still very inadequate at last year’s COP28 in Dubai, they were rejected by the EU and developing countries.

Last Monday’s agreement has now laid the foundations for a global emissions trading market that functions according to international rules and only allows high-quality carbon credits to be used to offset unavoidable emissions, or emissions that cannot be avoided at a disproportionate cost.

Prices for European emission allowances have remained almost unchanged on a weekly basis, with the December benchmark contract for EUA futures continuing to move in an upward technical pennant within a range of 65.39 to 68.80 euros.

If this formation is maintained, the price would move in the range of approx. 65 to 69 euros this week, the 200-day line, which currently stands at 65.12, could also provide support. In addition, a total of 14,582,500 EUAs will be auctioned on the EEX on all five trading days.

For the procurement of national emission allowances for 2024, there are only six auctions left on Tuesdays and Thursdays at the EEX, in which we can participate for you. The last auction is on Thursday, 5 December 2024 and ends at 3:00 p.m.

(Average Quotes Exchange / OTC)
Instrument	08/11/24	15/11/24	Change
EUA (December-2024-Future)	68.02 EUR	68.01 EUR	-0.01 EUR
VER (Natural Carbon Offsets)	0.23 USD	0.24 USD	+0.01 USD
VER (CORSIA eligible Carbon Offsets)	0.10 USD	0.21 USD	+0.11 USD
nEZ (German National Carbon Units)	45.00 EUR	45.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	74.26 USD	71.20 USD	-3.06 USD
EURO (Currency.. Forex)	1.0715 USD	1.0540 USD	-0.0175 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