Emissions Trading / Carbon Market News (11/04/2022)

Dear Madam or Sir,

The terrible war in Ukraine and the still omnipresent corona pandemic dominates the news, leaving little time for other topics. That is why we are pointing out the climate crisis in particular today, which will continue to develop in the direction of a catastrophe if we do not see Corona and the war in Ukraine and the associated problems with the supply of fossil fuels as an opportunity to immediately set the course towards to decarbonize the world.

From the beginning of industrialization to 2019, humanity released a total of 2,400 gigatonnes of greenhouse gases. In the period from 1850 to 1989, i.e. within 140 years, there were 1,400 gigatonnes of CO2e, i.e. 58% of the total emissions. Over the last three decades from 1990 to 2019, we released the remaining 1,000 gigatonnes of CO2e into the atmosphere. And the last decade sets another, sad record – in the period 2009-2019 it was 410 gigatonnes of CO2e, which is 17% of the emissions between 1850 and 2019.

Last week, the German federal government decided on the course for the reassignment of CO2 pricing in the building sector, which is now to begin in 2023. So far, this has been borne entirely by the heating costs of the tenants, but from next year there will be a phased model that passes the burden on to the landlord in terms of how harmful his building is to the climate.

If an apartment has a poor energy balance of more than 52 kilograms of CO2 per square meter, the landlord now pays 90% and the tenant only 10% of his heating costs. This should then be reduced in up to 10 steps down to 0% for the landlord, insofar as the building complies with the EH55 energy standard or better. In this case, the tenant continues to bear all costs for CO2 pricing in accordance with the Fuel Emissions Trading Act (BEHG).

Germany was the first country in Europe to introduce national emissions trading through BEHG, and the European Union is now toying with the idea of ​​introducing this across the EU in order to ensure that CO2 emissions in the building and transport sectors are priced accordingly in all countries. It will be interesting to see how quickly this will be implemented.

Due to the Easter holidays, there will only be an auction on EEX on four days this week and the following week; in the coming week there will only be three auction dates for EU emission allowances. Accordingly, the prices have now been slightly bullish and closed above the 80-euro-mark on Friday.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)78.28 EUR80.15 EUR+1.87 EUR
EUA (December-2022-Future)78.49 EUR80.09 EUR+1.60 EUR
VCU (Voluntary Carbon Units ø)10.99 USD11.45 USD+0.46 USD
VER (Gold Standard Spotmarkt ø)6.29 USD5.98 USD-0.31 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)104.38 USD102.27 USD-2.11 USD
EURO (Currency, Forex)1.1028 USD1.0875 USD-0.0153 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