Emissions Trading / Carbon Market News (04/04/2022)

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)   
EUA (Spot-Market)78.31 EUR78.28 EUR-0.03 EUR
EUA (December-2022-Future)78.60 EUR78.49 EUR-0.11 EUR
VCU (Voluntary Carbon Units ø)10.97 USD10.99 USD+0.02 USD
VER (Gold Standard Spotmarkt ø)6.20 USD6.29 USD+0.09 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)119.31 USD104.38 USD-14.93 USD
EURO (Currency, Forex)1.0981 USD1.1028 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