Emissions Trading / Carbon Market News (06/02/2023)

Dear Madam or Sir,

Before the Federal Environment Agency (UBA) is due to publish the official estimate of emissions for 2022 in accordance with the Climate Protection Act next March, it was able to draw a statistical line under 2021 last week. The figures could be of great importance in the future, as it represents the last status before the turning point – provoked by Russia’s invasion of Ukraine.

It was expected that emissions would increase compared to 2020, as the pandemic-related restrictions no longer played a role. In fact, CO2-equivalent emissions in Germany rose by around 29.6 million tonnes, or 4%. The strongest increase was in energy supply, as there was already a trend towards increased coal-fired power generation in the second half of 2021. Emissions also increased in the industrial and traffic sectors compared to the previous year. Emissions from households and agriculture, on the other hand, decreased. In total, 759.1 million tonnes of CO2 equivalents were emitted in Germany in 2021, 39% less than in the reference year 1990. In this respect, therefore, the European emission reduction targets were fully met by Germany.

In the short period since the beginning of the new year, the price of European pollution rights has staged an astonishing rally, rising by around 20 euros and taking us very close to the 100-euro mark again. After the December contract reached a high of EUR 97.55 on Wednesday, a sideways – downward movement followed for the rest of the week in technically driven trading.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)87.76 EUR91.87 EUR+4.11 EUR
EUA (December-2023-Future)89.23 EUR93.29 EUR+4.06 EUR
VCU (Voluntary Carbon Units ø)2.39 USD2.60 USD+0.21 USD
VER (Gold Standard Spotmarkt ø)2.53 USD2.54 USD+0.01 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)86.33 USD79.75 USD-6.58 USD
EURO (Currency, Forex)1.0868 USD1.0795 USD-0.0073 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