Emissions Trading / Carbon Market News (11/09/2023)

Dear Madam or Sir,

Last week, the first African climate summit took place in the Kenyan capital Nairobi in preparation for the UN climate summit taking place in Dubai at the end of November.

However, the continent, which is already particularly hard hit by the effects of climate change, also has great potential to curb global warming. Africa has large amounts of raw materials that are necessary for global decarbonization. In addition, the continent opens up a high potential for investors in renewable energies, if the participants have their way.

The African Development Bank estimates the annual costs of extreme weather events caused by human-caused climate change to be between $7 and $15 billion annually, with high potential for increases in the coming years.

In 2020, industrialized countries committed to raising 100 billion annually to finance climate protection projects in the global south. So far, however, these funds have only flowed to a significantly lesser extent due to the global crises that have taken place since then.

European emissions trading also showed a clearly bearish trend last week and lost more than four percent based on the weekly closing price. And this despite the fact that only 8,218,000 EUAs were auctioned over three days in the last trading week due to a meeting of the EEX working committee and the oil price (Brent) rose above the $90 mark. This week, a total of 14,601,000 emission allowances will be auctioned on all five trading days.

In addition, more moderate temperatures are expected in Central Europe in the coming week. If there is no technical counter-reaction, the EUAs will only find technical support around 77 euros. On the upside, resistance can be found in the area around 83 euros as well as the 200-day line, which is currently at 87.18 euros for the EUA-December-future.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)84.43 EUR80.71 EUR-3.72 EUR 
EUA (December-2023-Future)85.27 EUR81.52 EUR-3.75 EUR 
VER (Natural Carbon Offsets)1.98 USD1.70 USD-0.18 USD 
VER (CORSIA eligible Carbon Offsets)0.87 USD0.87 USD+0.00 USD 
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR 
ICE Brent Crude Oil (Benchmark Future)88.84 USD90.41 USD+1.57 USD 
EURO (Currency, Forex)1.0785 USD1.0701 USD-0.0084 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