Dear Sir or Madam
The German Federal Ministry of Economics and Climate Protection (BMWK) has presented a 142-page draft bill to amend the Greenhouse Emissions Trading Act (TEHG).
According to the draft, all installations such as stationary installations, aircraft, ships, combustibles and fuels are to be regulated in one law in future. For the years 2024 to 2026, however, the changes are to be implemented in the existing legal structure.
In addition, fossil fuels in agriculture, forestry, rail transport and the incineration of waste are to be included in future. Biomass plants, some of which have been able to make a profit from the allocation of free allowances to date, will no longer be subject to reporting or surrender obligations and will therefore no longer receive free allocations.
It remains to be seen what changes will be made in the committees before the amendment to the TEHG becomes legally binding.
In China, 2,257 power generation plants are currently priced via the national emissions trading scheme. The price for a tonne of CO2 there is currently the equivalent of EUR 11.70 and has risen by 15.1% since the beginning of the year. Since the start of CO2 emissions trading in China, the price has almost doubled.
In the short term, China plans to use the now established emissions trading system to reduce emissions in line with the EU emissions trading scheme. To this end, emitters from other sectors will be successively subjected to the trading obligation, which is certainly also a success of the EU’s CBAM (Carbon Borderline Adjustment Mechanism), as otherwise the pricing of imports from China would be almost entirely the responsibility of the EU.
And prices in EU emissions trading are still far removed from Chinese prices. In the last trading week, they rose by 4% and closed above the EUR 70 mark per tonne of CO2.
After overcoming the 200-day line, which currently stands at EUR 67.80, the 38-day line, which currently stands at EUR 69.51, was also overcome. The bullish trend was only halted by a resistance line, which is currently in the region of EUR 71.30.
However, depending on how the current geopolitical tensions in the Middle East develop, the share price could either overcome the resistance line and continue towards the EUR 80 mark or fall back to the EUR 65 region.
With the exception of Wednesday, a total of 11,094,500 EUA will be auctioned on the EEX in Leipzig this week.
| (Average Quotes Exchange / OTC) | |||
| Instrument | 26/07/24 | 02/08/24 | Change |
| EUA (December-2024-Future) | 67.87 EUR | 70.58 EUR | +2.71 EUR |
| VER (Natural Carbon Offsets) | 0.98 USD | 0.78 USD | -0.20 USD |
| VER (CORSIA eligible Carbon Offsets) | 0.20 USD | 0.18 USD | -0.02 USD |
| nEZ (German National Carbon Units) | 45.00 EUR | 45.00 EUR | +0.00 EUR |
| ICE Brent Crude Oil (Benchmark Future) | 80.63 USD | 78.17 USD | -1.06 USD |
| EURO (Currency.. Forex) | 1.0855 USD | 1.0911 USD | +0.0056 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