Category: Carbon Market News

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.

(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,

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.

(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,

led by Gregory Trencher of Kyoto University, scientists from Japan, Switzerland and Germany have published a study on the voluntary carbon market in Nature magazine, concluding that large-scale buyers in particular give priority to the acquisition and decommissioning of certificates that are of lower quality in terms of price and quality.

To this end, the researchers analysed data sets from 2020 to 2023 and found that the fewest projects used for compensation met high-quality standards such as the Gold Standard, Voluntary Carbon Standard or Clean Development Mechanism.

The 20 largest offset users were in particular airlines and oil companies, car manufacturers and logistics companies. Their decision-makers deliberately chose questionable low-cost projects and obviously did not care how this was perceived by customers and business partners.

We and many other companies and experts rightly see this as ‘greenwashing’ and hope that this study will become known to a wider public.

In the mandatory European CO2 market, prices have been slightly bearish in the weakening market environment in the past week, falling by just under 2% on a weekly closing price basis. The 38-day line, which is currently at 70.55, has proven to be a stable support level, which was tested on Friday.

In the last week of August, a total of 13,447,500 EUAs will be auctioned on the Leipzig EEX, which is almost 2.4 million emission rights more than in the previous week.

(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