Category: Carbon Market News

Dear Madam or Sir,

The submission deadline for the compliance year 2021 in the mandatory European emissions trading system EU ETS ends at the end of this week.

As was often the case in previous years, there was a small rally, which was triggered last Wednesday by the news that the Energy Committee of the European Parliament largely supports the EU Commission’s proposal for a reform of EU emissions trading in order to achieve the agreed reduction in greenhouse gases 55% to implement 2030. The main negotiations on the reform should begin in June at the latest.

Added to this were last-minute buyers who had probably been waiting for even cheaper prices and the breakthrough of the 80-euro mark, which then resulted in a price increase of more than 9%.

On a weekly closing basis, the spot market closed even higher than the December-22-Future due to the deadline, posting a weekly gain of more than 12%.

After only 6,957,000 EUA were auctioned last week, there are almost twice as many emission certificates in the new trading week with 12,786,000 on all five trading days.

Due to the pending end of the submission period this Friday and the closing price of just under the 90-euro-mark, the price should not offer any particularly favourable buying opportunities, at least in the coming days, despite the higher auction volume.

In the next week, developments in the war in Ukraine should again be one of the dominant topics on the market.

(Average Quotes Exchange / OTC)
Instrument	15/04/22	22/04/22	Change
EUA (Spot-Market)	79.88 EUR	89.59 EUR	+9.71 EUR
EUA (December-2022-Future)	79.97 EUR	88.99 EUR	+9.02 EUR
VCU (Voluntary Carbon Units ø)	11.53 USD	10.91 USD	-0.62 USD
VER (Gold Standard Spotmarkt ø)	6.06 USD	5.91 USD	-0.15 USD
nEZ (German National Carbon Units)	30.00 EUR	30.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	111.41 USD	105.91 USD	-5.50 USD
EURO (Currency, Forex)	1.0810 USD	1.0799 USD	-0.0011 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 ongoing war between Russia and Ukraine with no sign of a truce is currently driving oil supply fears as demand is expected to pick up as the holiday season approaches in Europe and North America.

In addition, Russian production fell by 7.5% in the first half of April compared to March, and EU governments have already announced that they are preparing proposals to end Russian crude oil imports.

Even though China refined oil 2% less in March than a year earlier, on slowing economic growth and concerns over further corona measures in China, bulls have held the upper hand in the oil market and Brent crude prices in comparison increase by almost nine percent compared to the previous week.

The prices for European carbon emission allowances, on the other hand, were unaffected by this and closed just below the EUR 80 mark almost unchanged, continuing the sideways movement that has been ongoing since mid-March.

In this trading week, due to Easter Monday, a total of 6,957,000 EUA will be auctioned at the Leipzig EEX on just three trading days.

This and the approaching deadline at the end of next week could push prices back above the 80s level barring any clearly bearish news.

(Average Quotes Exchange / OTC)
Instrument	08/04/22	15/04/22	Change
EUA (Spot-Market)	80.15 EUR	79.88 EUR	-0.27 EUR
EUA (December-2022-Future)	80.09 EUR	79.97 EUR	-0.12 EUR
VCU (Voluntary Carbon Units ø)	11.45 USD	11.53 USD	+0.08 USD
VER (Gold Standard Spotmarkt ø)	5.98 USD	6.06 USD	+0.07 USD
nEZ (German National Carbon Units)	30.00 EUR	30.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	102.27 USD	111.41 USD	+9.14 USD
EURO (Currency, Forex)	1.0875 USD	1.0810 USD	-0.0065 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,

Even if Corona paralyzed many areas of public life last year, at least partially, the past year 2021 was the year with the highest ever recorded CO2 emissions in the sector of ​​global energy-related emissions.

In total, the incredible number of 40.8 billion tons of CO2e was emitted. Leading the way was coal at 37% for more than 15 billion tons responsible, followed by oil at 10.7 billion tons (26%) and gas (NG) at 7.5 billion tons, accounting for 18% of global emissions. Methane gas is responsible for 10% or 4 billion tons of greenhouse gas and the remaining 9% is shared by industrial processes, waste and other industrial greenhouse gas generation.

At the end of last week, US President Joe Biden announced the release of one million barrels of oil per day for the next six months, which caused the price of Brent crude oil to fall below the USD 100 mark for a short time and showed a clear minus based on the weekly closing price.

One can only hope that the politicians responsible in the western world, due to the record number of greenhouse gas emissions and the background of the dependence on Russia and the Arab states, have finally understood that there is no alternative to the path to decarbonization of society.

In the past week of trading, the prices for the carbon emission allowances (EUA) of the European emissions trading system EU ETS moved sideways and closed almost unchanged on the basis of the weekly closing price.

A total of 5,575,500 EUAs will be auctioned this week on the Leipzig European Energy Exchange, as well as 600,000 EUAA for aviation, but aircraft operators could also use EUAs, since the price difference is marginal. The auction dates for Germany’s national emissions trading will also take place again this Tuesday and Thursday, with both 2021 and 2022 national emission certificates (nEZ) being able to be purchased.

(Average Quotes Exchange / OTC)
Instrument	25/03/22	01/04/22	Change
EUA (Spot-Market)	78.31 EUR	78.28 EUR	-0.03 EUR
EUA (December-2022-Future)	78.60 EUR	78.49 EUR	-0.11 EUR
VCU (Voluntary Carbon Units ø)	10.97 USD	10.99 USD	+0.02 USD
VER (Gold Standard Spotmarkt ø)	6.20 USD	6.29 USD	+0.09 USD
nEZ (German National Carbon Units)	30.00 EUR	30.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	119.31 USD	104.38 USD	-14.93 USD
EURO (Currency, Forex)	1.0981 USD	1.1028 USD	+0.0047 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,

Russia’s war against Ukraine was also the dominant topic on the financial, energy and commodity markets last week.

Even if you could see it in Germany’s Economics Minister Habeck, he has entered into a long-term energy partnership with Qatar, in particular for the supply of liquefied natural gas (LNG) in the coming years. Qatar is one of the world’s most important producers of liquefied natural gas. And so that at least a slight green can be seen, Habeck emphasized that the agreed partnership not only includes liquid gas, but also the expansion of renewable energies combined with further energy efficiency measures.

The German federal government thus intends to reduce the share of gas from Russia to around 30 percent by the end of 2022. By early April, the Russian share is expected to drop by 15 percent to just 40 percent.

US President Joe Biden, together with EU Commission President Ursula von der Leyen, also announced increased deliveries of liquid gas from the USA to the EU in Brussels. By 2030, Europe should have continued demand for additional LNG of at least 50 billion cubic meters per year from the US, equivalent to a third of the volume of Russian gas currently coming to Europe. US imports are expected to replace a tenth of Russian imports this year. In addition to the USA, the EU Commission is also negotiating with Qatar, South Korea, Azerbaijan and Japan.

In order to diversify supplies, the EU Commission is also in contact with countries such as Qatar, Azerbaijan, Japan and South Korea. The federal government wants to reduce the share of Russian gas in Germany to about 30 percent by the end of the year. By the end of this month, the share should be only 40 percent instead of the previous 55 percent.

With a view to the approaching end of the submission deadline at the end of the 17th calendar week, EU emission allowances could show bullish tendencies again, especially if there are signs of relaxation in Ukraine. From this point of view, it may be advisable to obtain at least some of the certificates that are still to be obtained for the compliance portfolio.

This week, regular auctions for a total of 12,786,000 EUAs will take place at EEX on all five working days.

(Average Quotes Exchange / OTC)
Instrument	18/03/22	25/03/22	Change
EUA (Spot-Market)	78.84 EUR	78.31 EUR	-0.53 EUR
EUA (December-2022-Future)	78.89 EUR	78.60 EUR	-0.29 EUR
VCU (Voluntary Carbon Units ø)	8.42 USD	8.95 USD	+0.53 USD
VER (Gold Standard Spotmarkt ø)	8.00 USD	8.54 USD	+0.54 USD
nEZ (German National Carbon Units)	30.00 EUR	30.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	108.21 USD	119.31 USD	+11.10 USD
EURO (Currency, Forex)	1.1091 USD	1.0981 USD	-0.0110 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. VCUs and VERs are average prices (CBL markets). 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 Federal Environment Agency, together with the Federal Ministry for Economic Affairs and Climate Protection, has issued a press release on the development of greenhouse gas emissions in Germany in 2021. All in all, the figures show that after a strong decline in 2020, emissions rose again significantly, by a good 33 million tonnes or 4.5 percent.

The rise is particularly noticeable in the energy sector: This shows a plus of 27 million tonnes of CO2-equivalents, as more coal was used for electricity generation due to increased electricity demand, lower electricity generation from renewable energies and the higher price of gas. Electricity generation from renewables fell by seven per cent, mainly due to poor wind conditions.

German State Secretary for Climate Patrick Graichen commented: “The rise in greenhouse gas emissions has unfortunately been on the horizon. The German government will now quickly counteract this with an immediate climate protection programme. The key is a much faster pace in the expansion of renewable energies. We must manage to install three times as much capacity as before in order to increase the share of renewables in electricity generation to 80 percent by 2030. There must be no more of the kind of deadlock that we have seen in recent years. The Russian war of aggression on Ukraine has also made it dramatically clear to us how closely security and energy supply are linked. … The faster transition away from fossil energies must encompass all areas – from industrial production and buildings to mobility and agriculture. The decisive factor here is to maintain the social balance.”

Since 1990, emissions in Germany have thus fallen by only 38.7 percent. The target for 2030 is a minus of 65 percent. The available data show that since 2010, the energy turnaround in particular has contributed to the reduction of emissions. All other significant sectors have more or less stagnated since 2010. As a meeting of EU environment ministers last Thursday showed, a growing number of EU member states are willing to support a second emissions trading system for buildings and transport.

European pollution allowances saw a significant sideways movement in a range of 76 – 80 euros during the past trading week. At the end of the week, EUAs were even traded in their narrowest weekly range since the end of 2021, as the 80-euro mark apparently acted like a magnet and at the same time represented a stable technical resistance.

(Average Quotes Exchange / OTC)
Instrument	11/03/22	18/03/22	Change
EUA (Spot-Market)	76.38 EUR	78.84 EUR	+2.46 EUR
EUA (December-2022-Future)	76.39 EUR	78.89 EUR	+2.50 EUR
VCU (Voluntary Carbon Units ø)	7.32 USD	8.42 USD	+1.10 USD
VER (Gold Standard Spotmarkt ø)	9.32 USD	8.00 USD	-1.32 USD
nEZ (German National Carbon Units)	30.00 EUR	30.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	112.40 USD	108.21 USD	-4.19 USD
EURO (Currency, Forex)	1.0912 USD	1.1091 USD	+0.0179 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. VCUs and VERs are average prices (CBL markets). 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