Emissions Trading / Carbon Market News (12/04/2021)

Dear Sir or Madam,

In January of this year, national emissions trading started in Germany to give the transport and real estate sector a price for CO2 emissions.

The figures show that this is necessary: ​​more than 2.2 billion tons of CO2 emissions are caused annually in these two sectors, which is around 50% more than in the sectors covered by European emissions trading system EU ETS.

For this reason, the European Commission is now examining the possibility of including these two sectors in the EU emissions trading scheme. In order to stay in line with the EU’s 2050 emission reduction targets for these sectors, a price of EUR 250.00 per ton would be required, as experts from the information service provider ICIS published last week.

There are currently several options for EU-wide pricing of these sectors up for debate; Among other things, a separate European cap-and-trade mechanism, which is initially decoupled from the existing EU ETS, or a step-by-step system with a specified price corridor, as in Germany, where pricing this year starts at 25 euros per ton and a price range of 55 euros from 2026 -65 euros per ton.

Whichever regulation the EU chooses – there are increasing signs that greenhouse gas emissions from fossil fuels and fuels will be priced across Europe in the not too distant future.

The prices for CO2 emissions in the sectors already covered, such as power generation, intra-European flights and heavy industry, continued to develop bullish over the past week. On Tuesday, the December benchmark contract reached a new all-time high of EUR 44.35 per EUA, even if the rest of the week was a little weaker.

It would be astonishing if the prices fell significantly before the end of the submission period in the trading week after next.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)42.43 EUR43.56 EUR+1.13 EUR
EUA (December-2021-Future)42,47 EUR43.64 EUR+1.17 EUR
CER (Spot-Market)0.63 EUR0.60 EUR-0.03 EUR
ICE Brent Crude Oil (Benchmark Future)64.64 USD63.02 USD-1.62 USD
EURO (Currency, Forex)1.1815 USD1.1900 USD+0.0085 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. CER CP1 and ERU are eligible in ETS until end of March 2015 and must be swapped into 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