Dear Sir or Madam,
Last week, Donald Trump was elected as the 47th President of the United States of America by a surprisingly large majority. As the 45th US President, he had already decided to withdraw from the Paris Agreement on climate change during his first term in office. It can be assumed that Trump will act accordingly again after his inauguration.
The 29th Conference of the Parties (COP29), the 29th World Climate Conference, begins today in Baku, the capital of Azerbaijan, and is scheduled to run until 22 November 2024. In view of the change of power in Washington, this topic will certainly be on the agenda.
Other topics at COP29 include payments to the countries of the so-called ‘global South’ that are most affected by climate change, as well as a new financing target from 2026.
It will also address Article 6 of the Paris Agreement and the associated market-based climate protection instruments and emissions offsetting mechanisms to combat the climate crisis. In addition, several other measures will be negotiated, such as a climate damage tax for polluting countries, technical solutions for greenhouse gas reduction, CO2 storage technologies and negative emissions technologies.
High hopes for breakthroughs in the negotiations, particularly with the largest global emitters, are likely to be in vain in Baku.
Last week, EU emission allowances rose sharply under the bullish influence of the electricity and gas market, closing the trading week up 6.5% on the previous week.
Technically, the path towards the 70-euro mark would be clear, but a relapse to the 200-day line, which is currently at 65.01, is also quite possible. Should one of these two marks be breached, either upwards or downwards, this could signal the short-term trend.
This week, a total of 11,749,000 EUA and, on Wednesday, 899,500 emission rights for the aviation industry (EUAA), which can also be used for stationary installations, will be auctioned on the European Energy Exchange.
| (Average Quotes Exchange / OTC) | |||
| Instrument | 01/11/24 | 08/11/24 | Change |
| EUA (December-2024-Future) | 63.87 EUR | 68.02 EUR | +4.15 EUR |
| VER (Natural Carbon Offsets) | 0.40 USD | 0.23 USD | -0.17 USD |
| VER (CORSIA eligible Carbon Offsets) | 0.44 USD | 0.10 USD | -0.34 USD |
| nEZ (German National Carbon Units) | 45.00 EUR | 45.00 EUR | +0.00 EUR |
| ICE Brent Crude Oil (Benchmark Future) | 73.33 USD | 74.26 USD | +0.93 USD |
| EURO (Currency.. Forex) | 1.0834 USD | 1.0715 USD | -0.0119 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,
Your Advantag – Team