Emissions Trading / Carbon Market News (10/01/2022)

Dear Ladies and Gentlemen,

According to the Federal Environment Agency, the German federal government received more than 12.5 billion euros through carbon emissions trading last year.

For Germany, a total of 101 million emission rights were auctioned on the Leipzig EEX in 2021, which is 6 million EUA less than in the previous year, not least due to the reduction factor of the cap-and-trades system.

The income of 12.5 billion includes a total of 5.3 billion euros from the revenue from EU emissions trading (EU-ETS) and 7.2 billion euros from the national emissions trading system (nEHS) in accordance with the Fuel Emissions Trading Act (BEHG), which includes the transport and building sectors and last year has started.

This income flows into the energy and climate fund and is intended, among other things, to promote climate protection measures, but also to stabilize the recently massive increase in electricity costs. This is intended to push the energy transition further towards decarbonisation. A total of 4.7 billion euros of the income was used to reduce the EEG (Renewable Energy Act) surcharge by 1.37 cents per kilowatt hour in 2021.

However, much more effort will be necessary in the new year to keep the German electricity price in a healthy range for industry and consumers.

In the past week, the prices for European CO2 emission rights (EUA) moved in a range from 79.80 to 88.55 euros and benefited from the increased energy prices and the ongoing pause in auctions on the Leipzig EEX.

This will end tomorrow and a total of 9,921,000 EUAs will be auctioned on four trading days this week.

The auctions in national emissions trading will also resume next week. Up to 10% of the items on December 31, 2021 in the register account of the taxable company can still be auctioned at a price of 25.00 euros per national emission certificate (nEZ) or at an unlimited amount for 30.00 euros.

If you see a need for action here, we will be happy to assist you with advice and action.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)80.36 EUR85.42 EUR+5.06 EUR
EUA (December-2022-Future)80.65 EUR85.15 EUR+4.50 EUR
VCU (Voluntary Carbon Units ø)8.29 USD8.44 USD+0.15 USD
VER (Gold Standard Spotmarkt ø)8.03 USD8.36 USD+0.36 USD
nEZ (German National Carbon Units)25.00 EUR30.00 EUR+5.00 EUR
ICE Brent Crude Oil (Benchmark Future)77.88 USD81.71 USD+3.83 USD
EURO (Currency, Forex)1.1371 USD1.1362 USD-0.0009 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. VCUs and VERs are average prices (CBL markets). 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