Emissions trading / Carbon Market News (04/10/2022)

Ladies and Gentlemen

Last week, the German federal government decided on a so-called “defence shield” with a volume of 200 billion euros so that gas and electricity prices remain affordable for companies and consumers. The exact design will be worked out in the coming weeks.

The German Bundestag is currently deliberating on a second law to amend the Fuel Emissions Trading Act (BEHG), in which CO2 emissions from the transport and building sectors are priced. A major point of criticism is the inclusion of biomass firing systems in national emissions trading under BEHG, which is planned under certain conditions, as this would further increase prices.

There is also further criticism of the inclusion of waste incineration plants from next year, since this would make prices correspondingly higher, especially for municipal waste, and these costs would be passed on to companies and consumers. In addition, the waste could then be disposed of in other countries that do not have a price for greenhouse-gas emissions from municipal waste.

From 2026, the building and transport sectors are to be integrated into a second European emissions trading system (EU ETS2), which will make national emissions trading in Germany obsolete.

In European emissions trading system, prices moved sideways last week in a range of EUR 64.10 to EUR 71.95 for the December benchmark contract for EUAs.

In this trading week, four auctions with a total of 9,393,000 EUAs will take place at the EEX, in which certificates from the European and German contingent will be auctioned.

Due to the end of the submission of the German national emission certificates (nEZ) for the year 2021 last Friday, auctions for 2022 nEZ have been held regularly on Tuesdays and Thursdays since last week. The last date for this year is Thursday, December 8th, 2022.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)65.61 EUR66.58 EUR+0.97 EUR
EUA (December-2022-Future)65.77 EUR66.73 EUR+0.96 EUR
VCU (Voluntary Carbon Units ø)9.40 USD8.18 USD-1.22 USD
VER (Gold Standard Spotmarkt ø)4.03 USD3.96 USD-0.07 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)86.75 USD85.46 USD-1.25 USD
EURO (Currency, Forex)0.9690 USD0.9797 USD+0.0107 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