Emissions Trading / Carbon Market News (15/05/2023)

Dear Madam or Sir,

In this decade, climate neutrality is a very big topic for companies to make their companies and assets sustainable.

In the future, for example, real estate without the use of renewable energies and concepts to make them climate-neutral can be regarded as problematic. Banks and funds will only invest in properties that meet the ESG criteria (Environmental, Social & Governance) or rate them accordingly.

In the foreseeable future, the rising prices for CO2 emissions will ensure that fossil fuels become a financial burden in all sectors of the economy, which must be reduced from a purely commercial point of view.

We have now integrated a new company into the IGP Advantag Group, IGP Green Solutions GmbH. Their field of activity is the achievement of the “Net-Zero” goal, especially for large commercial real estate, health and educational facilities as well as state and municipal buildings. The focus here is on bundling all the core competencies of the IGP Group and its partners in one hand in order to accompany companies and authorities on their way to climate neutrality. More information you can find at www.igp.green.

In the past week, emission rights have gained a good 4% on a weekly closing basis and on Thursday they also tested the air above the 90 mark.

Due to the public holiday, only three auctions will take place in the new trading week. On Monday and Tuesday, 2,409,000 EUAs are offered on the EEX in Leipzig and 775,500 EUAA on Wednesday, which can now be used just as well for stationary systems and not just for air traffic.

If the lower auction volume has not yet been priced in, this would have a price-driving effect. The demand for the auctions is therefore interesting this week.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)83.47 EUR87.02 EUR+3.55 EUR
EUA (December-2023-Future)84.96 EUR88.48 EUR+3.52 EUR
VER (Natural Carbon Offsets)2.11 USD1.70 USD-0.41 USD
VER (CORSIA eligible Carbon Offsets)1.49 USD1.38 USD-0.11 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)75.30 USD74.15 USD-1.15 USD
EURO (Currency, Forex)1.1127 USD1.0836 USD-0.0291 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