Emissions Trading / Carbon Market News (11/03/2024)

Dear Madam or Sir,

Last week, the German Federal Environment Agency presented the figures for the energy sector in Germany in 2023.

The share of renewable energies in gross electricity consumption has risen from 46.2% to 51.8%. Good wind conditions and more than one million new photovoltaic systems have contributed to this.

In the heating sector, renewables also increased slightly from 17.5% to 18.8% to 205 TWh.

Due to the increase in green electricity in the electricity mix and the growth in electromobility, renewables in the transport sector increased from 6.9% to 7.3%.

This means that in 2023, renewable energies in Germany emitted 250 million tonnes less CO2, which corresponds to an increase of 15 million tonnes compared to the previous year.

Conversely, this means that 15 million fewer EUAs or national emission allowances were also required, which should have a rather bearish effect in the area of EU ETS emissions trading.

Compared to the previous week, however, EUAs rose for the second week in a row, this time by 3.6%. On Tuesday, the December future broke through the EUR 60 mark and reached a weekly high of EUR 62.80 per EUA on Wednesday. However, the emission allowances then repeatedly bounced off the 38-day line and then moved back down from the 60 area.

Due to a lack of fundamental data, the price trends for emission allowances are still largely determined by technical factors. EUAs have currently broken out of the downward trend channel that has persisted since November 2023, the upper line of which could now serve as support. Should the buyers side remain active and sustainably break through the 38-day line, which currently stands at EUR 60.82, the next technical resistance level will be around EUR 63.50.

    (Average Quotes Exchange / OTC)       
EUA (December-2024-Future)56.37 EUR58.39 EUR+2.02 EUR
VER (Natural Carbon Offsets)1.53 USD1.37 USD-0.16 USD
VER (CORSIA eligible Carbon Offsets)0.83 USD0.46 USD-0.37 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)83.20 USD81.64 USD-1.56 USD
EURO (Currency, Forex)1.0837 USD1.0946 USD+0.0109 USD

(The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. EUA, 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