Emissions Trading / Carbon Market News (13/12/2021)

Dear Ladies and Gentlemen,

In the last week of trading, the European carbon emission allowances reached a new all-time high of 90.75 euros per EUA amid high volatility, were unable to keep the level above the 90s and closed at 88.88. The expected market correction then came on Thursday, with prices falling by 10%. However, Friday was again shaped by the bulls, so that the trading week closed with a significant plus of 7%.

The reasons for the recent price explosion were manifold: Germany has established a new federal government under Chancellor Olaf Scholz (SPD), in which the Greens have received important posts such as the newly formed Ministry for Economic Affairs and Climate Protection as well as the Foreign Ministry and the Ministry of Agriculture. On the other hand, the oil price rose despite higher production volumes agreed by the OPEC, as various delivery bottlenecks were emerging, which brought Brent Crude Oil an increase of 7.6% on a weekly basis.

This week begins the last full week in which a total of 11,428,000 EUA are auctioned on the Leipzig EEX. The last auction of the year with 2,542,500 EUAs will take place on Monday, December 20th, 2021, before a three-week break begins.

Insofar as there is additional bullish news in the market environment, speculatively oriented market participants could see this as a reason to move the market towards the 100 mark again with regard to the auction break. Since many institutional investors are still involved, it remains to be seen whether they want to realize more profit-taking towards the end of the year or whether they are more interested in a high valuation of the holdings as of December 31, 2021. Today, however, the EUA are optimistic with a plus of more than 2%.

This week the last fixed price auctions in Germany’s national emissions trading system (nEHS) will take place at a fixed price of 25.00 euros per ton of CO2e, on Tuesday and Thursday.

In the coming year one can only buy a maximum of 10% of the certificates acquired this year in the nEHS via the fixed price auctions at a price of 25.00 euros. If you haven’t stocked up enough for 2021, we are at your disposal.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)78.23 EUR83.73 EUR+5.50 EUR
EUA (December-2021-Future)78.25 EUR83.73 EUR+5.48 EUR
VCU (Voluntary Carbon Units ø)7.56 USD8.86 USD+1.30 USD
VER (Gold Standard Spotmarkt ø)8.92 USD8.67 USD-0.25 USD
nEZ (German National Carbon Units)25.00 EUR25.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)70.01 USD75,30 USD+5,29 USD
EURO (Currency, Forex)1.1312 USD1.1316 USD+0.0004 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. VCUs and VERs are average prices (CBL markets). 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