Dear Sir or Madam,
Last week, the European Commission commissioned European Energy Exchange AG (EEX) to operate the Common European Platform for the fourth phase (CAP4) of auctions under the EU Emissions Trading System (EU ETS 1) for the next five years, starting in January 2027.
The mandate covers the EU ETS 1 auctions for 25 EU Member States, three EEA-EFTA states, and the funds already included in the third phase of the common auction platform.
In addition, there are the new EU ETS 2 auctions for 27 EU Member States, the three EEA-EFTA states and the Climate and Social Fund. This means that from 2028, additional sectors (buildings, road transport and small-scale industry) will now be included in emissions trading across Europe; at the same time, this replaces the national emissions trading scheme in Germany.
The German federal government is committed to European emissions trading – yet Economics Minister Reiche wants to enforce an even slower pace in the reduction of emission allowances. Her aim is to protect industry from further cost increases.
On the other hand, those companies in particular feel disadvantaged who had assumed the EU would pursue a reliable climate policy and had invested in more climate-friendly production at an early stage. However, there are as yet no plans on how to deal with such investment risks.
In mid-July, the European Commission intends to present reform proposals for the EU ETS 1. It will be interesting to see how it positions itself with regard to investment security.
Those who had expected a swift end to the war in Iran were disappointed, and the energy markets also reacted with disillusionment last week. Oil and gas prices rose again, causing EUAs to fall by 4.6% on a closing price basis and drop well below the €80 mark once more.
In the new trading week, the full new auction volume will now come into effect for the first time across all five auction days. A total of 11,975,000 EUAs from the quotas of the EU, Poland and Germany will be put up for auction, representing a 13% increase compared with the previous week.
| Instrument | 29/05/26 | 05/06/26 | Change |
| EUA (December-2026-Future) | 80.63 EUR | 76.94 EUR | -3.69 EUR |
| EUA2 (December-2028-Future) | 66.75 EUR | 67.50 EUR | +0.75 EUR |
| nEZ25 (national German Emission Certificates) | 55.00 EUR | 55.00 EUR | +0.00 EUR |
| UKA (December-2026-Future (UK)) | 58.67 GBP | 55.53 GBP | -3.14 GBP |
| UK Natural Gas (December-2026-Future) | 117.07 GBP | 123.45 GBP | +6.38 GBP |
| ICE Brent Crude Oil (December-2026-Future) | 84.18 USD | 85.63 USD | +1.18 USD |
| EURO (Forex) | 1.1660 USD | 1.1523 USD | -0.0137 USD |
(EUA, EUA2, 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