Emissions Trading / Carbon Market News (12/02/2024)

Dear Sir or Madam

According to a survey conducted by the “Ludwig Erhard Ifo Centre for Social Market Economy” in Fuerth/Germany, 55 per cent of the Germans are in favour of Germany playing a pioneering role in climate protection, while a third are against it.

In order to achieve climate neutrality in Germany by 2045, 28% of respondents are in favour of subsidies, such as the promotion of electromobility. 16% are in favour of climate-friendly standards and bans on climate-damaging measures and just 8% are in favour of higher prices for CO2 emissions, although emissions trading in particular is the cheapest market-based instrument.

For this reason, the climate money needs to be introduced as soon as possible and not in 2026, as German Finance Minister Christian Lindner told newspaper “Welt am Sonntag” at the beginning of February.

The price of European carbon emission allowances only remained above the EUR 60 mark last week after breaking through a sideways-upward support line on Thursday, but this support also failed to hold on Friday. On a weekly closing price basis, EUAs lost a whopping 7.3%.

Technically, there is further support in the EUR 56.90 area, but sentiment is currently so negative that a new price slide is also possible.

The 200-day line is significantly higher at EUR 82.56 and even the 38-day line at EUR 70.23 is a long way from the current oversold price of just under EUR 59 in the December benchmark future.

The demand for the EEX auctions this week could be an indicator of whether price-conscious investors and speculators are now making more purchases again, which would also help the price out of the cellar.

    (Average Quotes Exchange / OTC)       
EUA (December-2024-Future)63.40 EUR58.79 EUR-4.61 EUR
VER (Natural Carbon Offsets)1.59 USD1.42 USD-0.17 USD
VER (CORSIA eligible Carbon Offsets)0.88 USD0.78 USD-0.10 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)77.40 USD81.67 USD+4.27 USD
EURO (Currency, Forex)1.0788 USD1.0782 USD-0.0006 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