Category: Carbon Market News

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

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)
Instrument	04/10/24	11/10/24	Change
EUA (December-2024-Future)	62.05 EUR	64.62 EUR	+2.57 EUR
VER (Natural Carbon Offsets)	0.33 USD	0.33 USD	+0.00 USD
VER (CORSIA eligible Carbon Offsets)	0.38 USD	0.43 USD	+0.05 USD
nEZ (German National Carbon Units)	45.00 EUR	45.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	78.74 USD	79.38 USD	+0.64 USD
EURO (Currency.. Forex)	1.0965 USD	1.0931 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