Emissions Trading / Carbon Market News (11/12/2023)

Dear Madam or Sir,

This year’s World Climate Conference is coming to an end and there are actually people who thought that the oil-producing countries would support the exit from fossil fuels demanded by 100 countries.

The fact that this idea was naive has now been revealed by the world’s leading oil exporter Saudi Arabia, which clearly and openly spoke out against phasing out fossil fuels.

The Saudi Arabian Energy Minister Abdulaziz bin Salman spoke out strictly against an exit in an interview with the financial  market information service “Bloomberg” and called states that would support an exit from fossil fuels “hypocritical”, which is certainly true of many state representatives.

A corresponding decision to withdraw must be made unanimously, which makes it obsolete, despite the fact that 2023 is the warmest year since weather records began.

The quadrillions in oil revenue are unfortunately more important than the collapse of the global climate by exceeding key tipping points.

At least Canada, also a large oil and gas producer and thus an emitter of 189 megatons of CO2, wants to limit its carbon emissions in this sector using an emissions trading system. An upper limit is to be introduced in the oil and gas sector from 2026, which should be paid for through emissions rights if these limits exceeded and thereby reduced.

The last auction for this year took place in Germany’s national emissions trading system last Thursday. Anyone who has purchased too many or too few national emission certificates can contact our trading department at any time. We will be happy to support you in buying or selling the 2023 nEZ.

EU emissions trading system prices continued to come under pressure last week, in line with energy stocks. European emission allowances have once again been under selling pressure and lost more than 5% based on the weekly closing price. Even the psychologically important 70 euro mark did not hold and the price continues to move southwards in a relatively narrow downward channel since the 80 euro mark.

The next relatively strong support is in the area around 64.50 euros, where the EUAs were last found at the end of September 2022.

This week, 11,427,000 EU emission rights will be auctioned on all trading days on the EEX, including 169,500 EUAAs for the aviation industry from the Polish contingent on Wednesday, which can now also be used for stationary facilities.

The last EEX auction of this year will take place next Monday for 3,041,500 EUAs.

    (Average Quotes Exchange / OTC)       
EUA (December-2023-Future)72.49 EUR68.63 EUR-3.86 EUR
VER (Natural Carbon Offsets)1.02 USD1.09 USD+0.07 USD
VER (CORSIA eligible Carbon Offsets)0.71 USD0.70 USD-0.01 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)79.07 USD75.94 USD-3.13 USD
EURO (Currency, Forex)1.0882 USD1.0768 USD-0.0114 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