Category: Carbon Market News

Dear Madam or Sir,

Yesterday the G7 countries agreed to stop importing Russian oil. The oil embargo is intended to deprive Russia of an important source of income for financing the war against Ukraine. The G7 includes the USA, Great Britain, France, Canada, Italy, Japan and Germany, which has held the presidency since the beginning of the year.

The European Union is also planning an oil embargo, but has yet to come to an agreement with the member states, which are currently strong dependent on imports of Russian oil. As of August 10, the EU has already placed an embargo on coal imports from Russia.

However, coal is also an important reason why the prices for EU emission allowances have recently broken through the 90 euro mark again and are showing a plus of 8.4% week-on-week.

Due to the high oil and gas prices and the planned phase-out of Russian fossil fuel imports, a greater use of coal for energy production is expected, especially since Germany intends to stick to its nuclear phase-out at the end of the year. Since coal has the worst climate balance in energy production, the energy producers will emit correspondingly more CO2 and therefore have a higher need for emission rights.

Coal produces 0.36 kg of CO2 per kWh of electricity, while natural gas produces 0.22 kg. Accordingly, producers have to buy 64% more allowances than if they used gas to generate electricity.

One can only hope that this will drive the further expansion of renewable energies in the EU, since Germany alone will produce a further 1,989 million tons of CO2 in the 2038 phase-out scenario from coal-fired power generation.

(Average Quotes Exchange / OTC)
Instrument	29/04/22	06/05/22	Change
EUA (Spot-Market)	84.87 EUR	91.36 EUR	+6.49 EUR
EUA (December-2022-Future)	84.45 EUR	91.54 EUR	+7.09 EUR
VCU (Voluntary Carbon Units ø)	10.63 USD	10.74 USD	+0.11 USD
VER (Gold Standard Spotmarkt ø)	5.63 USD	5.64 USD	+0.01 USD
nEZ (German National Carbon Units)	30.00 EUR	30.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	106.55 USD	112.81 USD	+6.26 USD
EURO (Currency, Forex)	1.0545 USD	1.0534 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,

Last Friday, the 69th Federal Press Ball took place in Berlin. However, many prominent politicians, above all German President Frank-Walter Steinmeier and the members of the cabinet, had cancelled because of the war. It was not only for this reason that the speech by Ukrainian Ambassador Andrij Melnyk, known for his clear words, attracted much attention. Among other things, the ambassador warned the numerous representatives of the press not to slacken their attention as the war continues. It is not uncommon for topics to disappear from the focus of journalists and thus from the public eye over time.

Unfortunately, this also applies to other crises and conflicts, not least the climate crisis, which poses an existential threat to all countries in the world. For example, one of the worst weather disasters in South Africa, with well over 400 deaths and probably 40,000 people displaced by the floods, received only brief attention. Another example is currently taking place in South Asia. In India, millions of inhabitants are currently suffering from an early heat wave with temperatures sometimes exceeding 45 degrees Celsius. Northwest and central India are experiencing the hottest April since weather records began 122 years ago, the head of the weather service said. At more than two dozen places, the agency reported maximum temperatures of more than 45 degrees on Friday, with Banda in the northern state of Pradesh the hottest place in the country at 47.4 degrees. And the heat wave could intensify in the coming days, with temperatures crossing the 50-degree Celsius mark in the north, as May is usually the hottest month of the year.

It would be a fatal mistake to pay attention to such disasters only when they happen right on our doorstep or when we ourselves are affected by them. Because in fact we are all affected by them. The next environmental disaster can happen at any time and anywhere. We should therefore not ignore it, but make it the basis of our actions and decisions.

The market for European pollution rights fell quite significantly in the past trading week. On Wednesday, it even briefly broke through the 80-euro mark. The price then stabilised slightly above this level before moving up again on Friday in thin trading, narrowly missing the target of 86 euros.

(Average Quotes Exchange / OTC)
Instrument	22/04/22	29/04/22	Change
EUA (Spot-Market)	89.59 EUR	84.87 EUR	-4.72 EUR
EUA (December-2022-Future)	88.99 EUR	84.45 EUR	-4.54 EUR
VCU (Voluntary Carbon Units ø)	10.91 USD	10.63 USD	-0.28 USD
VER (Gold Standard Spotmarkt ø)	5.91 USD	5.63 USD	-0.28 USD
nEZ (German National Carbon Units)	30.00 EUR	30.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	105.91 USD	106.55 USD	+0.64 USD
EURO (Currency, Forex)	1.0799 USD	1.0545 USD	-0.0254 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 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