Emissions Trading / Carbon Market News (04/03/2024)

Dear Madam or Sir,

Last week, the German Federal Minister of Economics, Robert Habeck, gave the green light for the capture and storage of CO2 from industrial processes (carbon capture and storage) at sea. The relevant laws are now to be drafted. If the technology really is sufficiently safe, as Habeck stated, this would be a way to significantly reduce CO2 emissions from industry in Germany. Funding could therefore be possible based on the cost savings for emission allowances alone, but here too the government is required to help the technology and the associated infrastructure achieve a breakthrough in the coming years.

Norway has been leading the way here for some time now and has already done some pioneering work.

Despite the mild temperatures in Central Europe, prices for EU emission allowances rose by 8% last week. The trading range of the December 2024 EUA futures moved within a range of EUR 51.55 – 58.88 and thus roughly marked the lower and upper end of a downward trend channel that began in mid-November.

Should this be broken upwards, the next technical resistance in the coming week will be around EUR 62, but the aforementioned trend channel is relatively pronounced, which is why it would need further cause to break upwards.

A total of 11,094,500 EUAs will be auctioned on the European Energy Exchange this week; the Polish auction will not take place on Wednesday as scheduled.

In addition, the first auctions for 2024 German national emission allowances will take place on Tuesday and Thursday with unlimited auction volumes.

Likewise, from this week onwards, additional purchases for 2023 nEZ can be procured on the EEX, but only 10% of the quantity already auctioned in 2023.

We will be happy to answer any questions you may have in this regard.

    (Average Quotes Exchange / OTC)       
EUA (December-2024-Future)52.22 EUR56.37 EUR+4.15 EUR
VER (Natural Carbon Offsets)1.51 USD1.53 USD+0.02 USD
VER (CORSIA eligible Carbon Offsets)0.84 USD0.83 USD-0.01 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)80.95 USD83.20 USD+2.25 USD
EURO (Currency, Forex)1.0817 USD1.0837 USD+0.0020 USD

(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