Emissions Trading / Carbon Market News (12/06/2023)

Dear Madam or Sir,

The Greens had climate money anchored in the coalition agreement of the current German government, and the coalition committee of March last year decided to develop the possibility of payment via the personal tax ID. But even Greens boss Robert Habeck no longer expects that the climate money will flow in this legislative period, which is intended to relieve low-income households in particular.

The Liberals, which are also in the German government, has strengthened its position in recent weeks to pursue climate protection solely with the well-functioning CO2 emissions trading system, which has successfully proven its control effect. There should also be no upper price limits in the transport and building sector, as is currently the case in national emissions trading, which will be EUR 65 in 2026.

In an analysis, the MCC (Mercator Research Institute on Global Commons and Climate Change) came to the conclusion that the prices for CO2 emissions, or their greenhouse gas equivalents would be in the range of 200 to 300 euros per ton of CO2e at the end of the decade.

In the foreseeable future, politicians should therefore succeed in finding ways to mitigate social hardship and at the same time improve the broad understanding of climate protection.

After the prices for EU emission allowances fell significantly in the previous two weeks, they rose again visibly in the last week of trading. Based on the weekly closing price, the EUAs increased by almost 10%, although with 11.8 million EUAs that were auctioned on the EEX, almost twice as many certificates flowed into the market as in the previous week.

In the new trading week, there will be no Polish auction on Wednesday, which is why a total of 9,166,500 certificates will be auctioned on the other four trading days.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)77.75 EUR85.50 EUR+7.75 EUR 
EUA (December-2023-Future)78.99 EUR86.79 EUR+7.80 EUR 
VER (Natural Carbon Offsets)1.11 USD1.52 USD+0.41 USD 
VER (CORSIA eligible Carbon Offsets)0.77 USD0.82 USD+0.05 USD 
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR 
ICE Brent Crude Oil (Benchmark Future)77.78 USD74.92 USD-2.86 USD 
EURO (Currency, Forex)1.0728 USD1.0748 USD+0.0020 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