Dear Sir or Madam,
In 2027, Germany’s national emissions trading under the Fuel Emissions Trading Act is to be transferred to the new second European Emissions Trading System EU ETS 2.
Now, the European Commission has set a quantity of 1,036,288,784 emission allowances for the buildings and transport sectors in relation to the 2027 cap. Here, too, an allowance represents the right to emit one tonne of CO2 with fossil fuels. No figures have yet been set for 2028.
According to the Commission, these 1.04 billion tons correspond to the average CO2 emissions in the priced sectors in the EU in 2016-2018. For 2028, the average emissions from 2024-2026 will be used as the baseline.
Buildings equipped with photovoltaic systems and/or heat pumps will therefore have significantly less to contribute under the EU ETS 2 carbon pricing system, and drivers of electric vehicles will also have a significant financial advantage.
Since the EU ETS 2 is expected to be particularly volatile in the first few months, it is advisable to work with a partner that has many years of experience in the EU ETS 1 and can recommend an appropriate optimal procurement strategy for the emission rights. Please feel free to contact us today if you will be participating in the EU ETS 2.
In the past week, EU ETS 1 emission allowances fell significantly in the run-up to the expiry of the December 2024 futures contract, losing almost 6% on a weekly closing price basis.
Today, the last auction of EU emission allowances (EUA) at the Leipzig EEX this year will also take place, with 3,428,000 certificates from EU stocks.
Should the market remain bearish, we see support in the area of around 62.50, after which the 60-euro mark could provide market-psychological support. On the upside, the 200-day moving average is now a resistance level at 66.36 and just under 69 another resistance line.
| (Average Quotes Exchange / OTC) | |||
| Instrument | 06/12/24 | 13/12/24 | Change |
| EUA (December-2024-Future) | 68.31 EUR | 64.43 EUR | -3.88 EUR |
| VER (Natural Carbon Offsets) | 0.36 USD | 0.40 USD | +0.04 USD |
| VER (CORSIA eligible Carbon Offsets) | 0.46 USD | 0.44 USD | -0.02 USD |
| nEZ (German National Carbon Units) | 45.00 EUR | 45.00 EUR | +0.00 EUR |
| ICE Brent Crude Oil (Benchmark Future) | 71.35 USD | 74.56 USD | +3.21 USD |
| EURO (Currency.. Forex) | 1.0568 USD | 1.0497 USD | -0.0071 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,
Your Advantag – Team