Emissions Trading / Carbon Market News (13/02/2023)

Dear Madam or Sir,

As expected, both the EU parliamentary committee and the EU member states have passed the reform of the EU emissions trading system (EU ETS), which is why even more sectors and companies will be subject to the pricing of greenhouse gas emissions in the coming years.

Peter Liese, the responsible rapporteur in the Parliament of the European Union, speaks of a great success, as he announced on Twitter. Now the shipping, road transport and heating sectors are becoming a reality as part of the “Fit for 55” package. The goal here is to surpass the goal of reducing carbon emissions in the priced sectors by half until 2030.

Naturally, the latest steps don’t go far enough for environmental organizations, too far for some branches of industry and economists welcome the expansion of trade to other sectors.

And that’s not to be underestimated in the reform either – the revenue should also reduce the social consequences for low-income households by 65 to 86 billion euros in favour of the climate social fund.

This had no impact on the development of the price of EU emission allowances, as this has already been priced in by the market. The EUAs tended to move sideways and only lost slightly on a weekly closing price basis after the high price gains of the previous weeks.

Insofar as trading continues to be mainly technical this week, the price could move in the rough range between 91 and 98 euros, with the tendency being more sideways-upwards.

During this trading week, a total of 11,842,500 EUAs will be offered for auction on all five trading days at the Leipzig Energy Exchange EEX. Certificates from national emissions trading are also available this week on Tuesdays and Thursdays.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)91.87 EUR91.76 EUR-0.11 EUR
EUA (December-2023-Future)93.29 EUR93.03 EUR-0.26 EUR
VCU (Voluntary Carbon Units ø)2.60 USD4.05 USD+1.45 USD
VER (Gold Standard Spotmarkt ø)2.54 USD2.37 USD-0.17 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)79.75 USD83.90 USD+4.15 USD
EURO (Currency, Forex)1.0795 USD1.0677 USD-0.0118 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