Dear Sir or Madam,
Last week, the German Federal Environment Agency announced which regulated trading venue will conduct the auctions of national emission allowances in the coming year.
As expected, the Leipzig-based European Energy Exchange (EEX) was awarded the contract, as it is a regulated exchange with many years of experience and the technical expertise to carry this out. The EEX has been conducting auctions in national emissions trading in the fixed price phase since the beginning, as well as auctions in European emissions trading for more than 15 years.
In contrast to the previous fixed price phase, which began in 2021 at £25 per tonne of CO2 for distributors of fossil fuels in the building and transport sectors and rose to £55 in this final year as planned, next year’s auction will now take place within a price corridor of £55 to £65 per national emission allowance (nEZ26). Those who have not been successful in the auctions can still purchase allowances at a price of 70 euros until the end of August 2027, which should lead to a lively secondary market.
In addition to a moderate increase in EEX transaction fees, there are also increased eligibility requirements for participants in national emissions trading, which should also be seen as preparation for the transition to EU ETS2 planned for 2027.
Although the eligibility requirements have not yet been published, they will be based on the practices of the regulated market.
Currently approved participants who are already approved for exchange trading and clearing on the regulated market and have already participated in fixed-price sales in the nEHS will be automatically approved for auctions on the EEX and clearing with the ECC (European Commodity Clearing AG).
However, this will not affect the majority of obligated market participants, as they will be able to obtain the certificates they need as usual through their intermediary.
According to information from the Federal Environment Agency, the auctions are expected to begin in November 2026. The start date for auctions for additional purchases of nEZs with the 2025 annual identifier has not yet been announced.
In the European Emissions Trading System (EU ETS), bulls prevailed on the market last week, pushing up the price of EUAs by 4.2% on a weekly closing basis. With a weekly high of €79.55 in the benchmark contract on Friday, this also corresponds to a 7-month high, and it remains to be seen whether the market will break through the €80 barrier, as the market environment in the energy sector was rather bearish.
This week, 2.7% fewer EUAs will be auctioned on the EEX. The Polish auction on Wednesday will not take place as scheduled, but 796,500 EUAs from the Northern Irish quota will be auctioned in its place.
| Instrument | 26/09/25 | 03/10/25 | Change |
| EUA (December-25-Future) | 75.98 EUR | 79.16 EUR | +3.18 EUR |
| EUA 2 (December-28-Future) | 88.03 EUR | 87.13 EUR | -0.90 EUR |
| nEZ25 (national Emission Allowances (D)) | 55.00 EUR | 55.00 EUR | +0.00 EUR |
| UKA (December-25-Future (UK)) | 54.30 GBP | 57.02 GBP | +2.72 GBP |
| UK Natural Gas (December-25-Future) | 88.04 GBP | 83.10 GBP | -4.94 GBP |
| ICE Brent Crude Oil (December-25-Future) | 68.75 USD | 64.53 USD | -4.22 USD |
| EURO (Forex) | 1.1704 USD | 1.1743 USD | +0.0039 USD |
(EUA, EUA 2, UKA, Natural Gas, Crude Oil and Euro Currency shows day-end-exchange quotes of the benchmark contract. This market information has just an informational character and are no advice or offer to trade emission allowances or their futures and options. If you want to unsubscribe, please reply to this mail.)
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With kind regards,
Your Advantag – Team