Emissions Trading / Carbon Market News (05/12/2022)

Dear Madam or Sir,

The German auctions within the framework of EU emissions trading system will also be held at EEX in the next three years with an option to extend by a further two years, as the energy exchange from Leipzig has published.

From 2010 onwards, more than 1.5 billion carbon emission allowances for Germany alone were auctioned at the EEX with total proceeds of more than 26 billion euros, almost all of which was used to finance German and international climate protection projects. In 2021 alone, EEX auctioned 587 million emission allowances for the EU member states.

Last Tuesday, the EU Parliament, the European Commission and the Presidency of the EU Council of Ministers, which is currently represented by the Czech Republic, were able to reach a preliminary agreement on the conditions for including maritime transport in European emissions trading system. Shipping is to be included in EU emissions trading from the year after next.

50% of the emissions from maritime journeys to and from European ports, including those from third countries, are now subject to carbon pricing from 2024. From January 2024 onwards, ship operators are obliged to purchase pollution permits for 40% of their emissions. From 2025 this share will increase to 70% and from 2026 carbon emission certificates will have to be purchased for all emissions.

While this deal was to be expected, the already bullish sentiment in the European carbon market was further boosted and emission allowances are up a strong 11% over the past week of trading, easily breaking through any technical resistances.

Should the chart technique play a role in the new trading week, a good support line can be found in the area around EUR 83.50 and stronger resistance in the region around EUR 93.30. The price is currently in between, but profit-taking could be a realistic scenario.

This week, a total of 12.5 million EUAs will be offered on all five trading days at EEX, in the coming week 9.4 million and the last auction this year will take place on December 19, 2022 in Leipzig, in which 2,568,500 EUAs will be offered.

The last two auctions for Germany’s national emission allowances will also take place this week on Tuesday and Thursday; If you still want to take part in these, you should act promptly and get in touch with our carbon trading desk.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)78.78 EUR87.58 EUR+8.80 EUR
EUA (December-2022-Future)78.86 EUR87.67 EUR+8.81 EUR
VCU (Voluntary Carbon Units ø)5.43 USD5.33 USD-0.10 USD
VER (Gold Standard Spotmarkt ø)3.15 USD2.97 USD-0.18 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)83.81 USD85.84 USD+2.03 USD
EURO (Currency, Forex)1.0395 USD1.0539 USD+0.0144 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