Category: Carbon Market News

Dear Madam or Sir,

The climate activists from “Fridays For Future” sent 101 more or less serious questions to the German FDP parliamentary group in Berlin last week. The main addressee, Christian Lindner, did not leave these questions unanswered. Of course, the 101st question was “How dare you?” and it also proves on the part of the activists that they have a sense of humor and don’t take themselves as seriously as the activists of the “last generation”.

The Liberals have formulated corresponding answers. Here they tried to explain to the climate activists that the mandatory CO2 emissions trading in Europe brings exactly the savings in greenhouse gases that are in line with the Paris climate protection agreement. We want to be open to technology here.

Ultimately, this is also the right way, because the climate does not care how mankind reduces the anthropogenic greenhouse gases, as long as it happens. Burning coal to respond to the energy supply risks of the Ukraine war, certainly not.

In the past week of trading, EU emissions allowances fought through resistance, gaining more than 6 percent on a weekly closing basis. EUAs rose above the EUR 90 mark on Thursday and have been trading well above it since then.

Only 9,913,500 EUAs will be auctioned at the European Energy Exchange this week due to the regular lack of the Polish auction this Wednesday. In the next week, August will start with the annual auction volume being halved and only 7,615,000 EUAs will be offered on all five trading days.

(Average Quotes Exchange / OTC)
Instrument	14/07/23	21/07/23	Change
EUA (Spot-Market)	85.05 EUR	90.48 EUR	+5.43 EUR
EUA (December-2023-Future)	86.04 EUR	91.43 EUR	+5.39 EUR
VER (Natural Carbon Offsets)	2.53 USD	2.41 USD	-0.12 USD
VER (CORSIA eligible Carbon Offsets)	1.22 USD	1.38 USD	+0.16 USD
nEZ (German National Carbon Units)	30.00 EUR	30.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	79.63 USD	80.81 USD	+1.30 USD
EURO (Currency, Forex)	1.1213 USD	1.1124 USD	-0.0089 USD

(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask has usually in Spot Market a visible spread. The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. 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

Dear Madam or Sir,

The European Commission will support a total of 41 major projects in Europe with the income from EU emissions trading, including seven projects from Germany.

Sustainable projects in the field of renewable energies, sustainable fuels and in the cement and steel industry are being funded with a total of 3.6 billion euros. All projects are to be implemented by 2030 and are expected to reduce more than 220 million tons of CO2 or its equivalent in other greenhouse gases.

The compliance market for European emission allowances was almost unchanged in the past trading week. In the December 23 benchmark contract, the EUAs remained stable above the important EUR 85 mark and ranged from EUR 85.06 to EUR 88.32.

This week, auctions will take place on all five trading days at the Leipzig EEX. A total of 12,589,500 EUAs will be offered for auction.

(Average Quotes Exchange / OTC)
Instrument	07/07/23	14/07/23	Change
EUA (Spot-Market)	85.18 EUR	85.05 EUR	-0.13 EUR
EUA (December-2023-Future)	86.16 EUR	86.04 EUR	-0.12 EUR
VER (Natural Carbon Offsets)	2.39 USD	2.53 USD	+0.14 USD
VER (CORSIA eligible Carbon Offsets)	1.59 USD	1.22 USD	-0.37 USD
nEZ (German National Carbon Units)	30.00 EUR	30.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	78.28 USD	79.63 USD	+1.35 USD
EURO (Currency, Forex)	1.0968 USD	1.1213 USD	+0.0245 USD

(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask has usually in Spot Market a visible spread. The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. 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

Dear Madam or Sir,

The German Federal Environment Agency published its annual report for 2022 last week. This showed that the emissions of the approx. 1,730 German plants that are subject to trading in the EU-ETS only fell minimally from 355 to 354 million tons of CO2 or its equivalent (CO2e). This was also hardly to be expected after energy production in particular had used significantly more coal-fired power, as there were fears of gas shortages due to the Ukraine war. As a result, emissions in the energy sector increased for the second year in a row, by three percentage points.

In the aviation sector, emissions rose by a significant 55% to almost 7.2 million tons of CO2 due to the decline in the corona pandemic. In industry, there was a decline of six percent to 112 million tons of CO2e. And Europe-wide, the systems covered by the EU ETS have only shown a minimal decrease to 1.32 billion tons of CO2e.

In the past week of trading, the prices in the mandatory EU emissions trading system were visibly struggling with the increased supply volume at the primary market auctions. Accordingly, the price failed to break out of a relatively strong sideways-below trendline, causing prices to decline 3.3% on a weekly closing basis.

In national German emissions trading, the government has now agreed to raise the price per national emissions certificate (nEZ) next year to EUR 45.00 per nEZ from the current EUR 30.00, as originally planned when the Fuel Emissions Trading Act (BEHG) came into force. In the first amendment last year, the price for 2023 was reduced by five euros to EUR 30.00; In 2024 it should be EUR 35.00 based on the change.

(Average Quotes Exchange / OTC)
Instrument	30/06/23	07/07/23	Change
EUA (Spot-Market)	88.09 EUR	85.18 EUR	-2.91 EUR
EUA (December-2023-Future)	89.08 EUR	86.16 EUR	-2.92 EUR
VER (Natural Carbon Offsets)	2.01 USD	2.39 USD	+0.38 USD
VER (CORSIA eligible Carbon Offsets)	1.15 USD	1.59 USD	+0.44 USD
nEZ (German National Carbon Units)	30.00 EUR	30.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	75.13 USD	78.28 USD	+3.15 USD
EURO (Currency, Forex)	1.0912 USD	1.0968 USD	+0.0056 USD

(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask has usually in Spot Market a visible spread. The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. 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

Dear Madam or Sir,

Multnomah County is located in the US state of Oregon in the northwest of the United States of America. The county has now filed a lawsuit against a total of 17 oil and gas companies, including BP, Chevron, Exxon Mobil, and Shell.

Herein, Multnomah County is seeking $51.5 billion in damages for the deadly 2021 Pacific Northwest heatwave, which claimed approximately 800 lives. The county believes, these companies are responsible for the heat dome event because of their contribution to global warming.

The lawsuit seeks $50 million for actual damage from the heatwave and $1.5 billion for future damage. In addition, the plaintiffs are seeking an additional $50 billion for a fund to prepare for future extreme weather events.

This lawsuit marks the 36th time oil and gas companies have been sued for causing harm, according to plaintiffs, from global warming.

But Big-Oil is currently still assuming that it will continue to produce around 100 million barrels a day in 2050, as Exxon Mobile reported in a report to the US Securities and Exchange Commission. According to calculations by the International Energy Agency (IEA), however, production must fall to less than 30 million barrels per day to limit global warming to 1.5°C compared to the pre-industrial age in accordance with the Paris climate protection agreement.

Global emissions trading makes an important contribution here, which gives the control effect in the direction of climate-friendly transport and heating systems – and carbon pricing will play an increasingly important role in the future.

In the past week, the prices for EU carbon emission allowances have slowly worked their way up a resistance line but have not been able to sustainably break through this technical sideways downline.

The new EEX auction calendar has been in effect since this week for the first time and a total of 12,589,500 EUAs are auctioned on all five trading days. It will be interesting to see how the market absorbs the higher volume this week, although most of it should already be priced in.

(Average Quotes Exchange / OTC)
Instrument	23/06/23	30/06/23	Change
EUA (Spot-Market)	86.81 EUR	88.09 EUR	+1.28 EUR
EUA (December-2023-Future)	87.88 EUR	89.08 EUR	+1.20 EUR
VER (Natural Carbon Offsets)	1.64 USD	2.01 USD	+0.37 USD
VER (CORSIA eligible Carbon Offsets)	1.04 USD	1.15 USD	+0.11 USD
nEZ (German National Carbon Units)	30.00 EUR	30.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	74.21 USD	75.13 USD	+0.92 USD
EURO (Currency, Forex)	1.0893 USD	1.0912 USD	+0.0019 USD

(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask has usually in Spot Market a visible spread. The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. 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

Dear Madam or Sir,

Professor Ottmar Edenhofer, Director of the Potsdam Institute for Climate Impact Research (PIK) and also Director of the Mercator Research Institute on Global Commons and Climate Change (MCC), told the magazine “Spiegel” that prices for emissions in the transport and building sectors would have to be drastically increased in order to achieve the important climate protection sector targets.

The current price for a carbon emission allowance in national German emissions trading system is EUR 30.00 per ton this year and will rise to EUR 45.00 in 2024. The Berlin MCC has now determined that the control effect of CO2 pricing requires significantly higher prices in order to reduce the consumption of fossil fuels in the transport and building sector.

The MCC economists have now calculated a price of EUR 275.00 per ton of CO2 in 2030 and a further increase to EUR 340.00 by 2035 to make climate-damaging energy sources obsolete. For an average household in Germany, these would be additional costs of around EUR 13,400 by 2045, and even EUR 23,100 for a single-family home with oil heating.

In addition, Edenhofer recommends using part of the income as aid linked to the CO2 emissions per square meter or the type of heating. Households with gas boilers could get back a total of 6,360 euros from emissions trading by 2045, with oil heating it would be 9,540 euros.

The new auction calendar with the adjusted auction volumes for the rest of the year was published at EEX last week. The European Commission uses the additional volume to finance measures within the framework of REPowerEU.

In July, the usual auction volumes at EU auctions will rise from 2,409,000 EUAs per auction to 2,658,000. During the August summer break, the EU will then auction 1,329,000 EUAs.

In the period from September to December, 3,035,000 EUAs will then be offered in the regular EU auctions, 2,147,000 for Germany (currently 1,939,500 weekly) and 3,347,500 EUA every two weeks for Poland (previously 2,676,000).

The price of the EUAs took this as an opportunity to correct after the significant increases of the two previous weeks and fell 4.8% on a weekly closing basis after the price had previously risen to EUR 96.00 (EUA Dec-2023) last Tuesday.

In the last week of June, a total of 9,167,500 EUAs will be auctioned on the EEX due to the two-week auction of Polish certificates, before a total of 12,589,500 EUAs will be offered in the coming week due to the new auction calendar and the Polish auction.

(Average Quotes Exchange / OTC)
Instrument	16/06/23	23/06/23	Change
EUA (Spot-Market)	91.21 EUR	86.81 EUR	-4.40 EUR
EUA (December-2023-Future)	92.35 EUR	87.88 EUR	-4.47 EUR
VER (Natural Carbon Offsets)	1.52 USD	1.64 USD	+0.12 USD
VER (CORSIA eligible Carbon Offsets)	1.11 USD	1.04 USD	-0.07 USD
nEZ (German National Carbon Units)	30.00 EUR	30.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	76.42 USD	74.21 USD	-2.21 USD
EURO (Currency, Forex)	1.0941 USD	1.0893 USD	-0.0048 USD

(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask has usually in Spot Market a visible spread. The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. 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