Dear Sir or Madam,
In the negotiations with the CDU and the SPD, the Green Party has managed to push through the idea that 1/10th, or 100 billion, of the exorbitant debt package , the exorbitant German debt package of 1,000,000,000,000.00 euros (one trillion euros), 1/10th, or 100 billion euros, will be invested in climate protection and climate neutrality in 2045 is to be written into the German constitution.
It is still far from certain whether the resolution on this mountain of debt will receive the necessary two-thirds majority in both the German Bundestag and the Bundesrat this week, as there could potentially be defectors in the ranks of the CDU/CSU, SPD and Greens, and the majority will be conceivably narrow.
However, Manuel Frondel of the Leibniz Institute for Economic Research at the Ruhr University Bochum has determined that significantly higher costs for the economy, consumers and the state will be added to the 100 billion debt for five years of earlier climate neutrality compared to other EU states.
According to the study he led, Germany could avoid up to 750 billion euros in higher costs if it aligned its climate neutrality target with the other EU states‘ 2050 target, which in turn means that the other states’ target would cost up to 750 billion.
His argument is based on the assumption that abatement costs will rise sharply until 2045. Furthermore, this would not help the climate, because the EU Emission Allowances that would then be released would simply be bought up by companies in other countries, which would then be able to emit more greenhouse gases.
Last week, these EU Emission Allowances showed a gain of 3.4 per cent for the first time in five weeks, based on the weekly closing prices, and the December future closed just below the 71-euro mark.
The bullish sentiment was accompanied by a corresponding energy market environment, which benefited from the cool Central European temperatures, which, however, will rise noticeably again towards the end of the week.
A total of 13,416,000 EUA will be offered on the EEX this week on all five trading days, which represents an increase of 18.3% compared to the previous week.
| (Average Quotes Exchange / OTC) | |||
| Instrument | 07/03/25 | 14/03/25 | Change |
| EUA (December-25-Future) | 68.63 EUR | 70.99 EUR | +2.36 EUR |
| nEZ (national Emission Allowances (D)) | 55.00 EUR | 55.00 EUR | +0.00 EUR |
| UKA (December-25-Future (UK)) | 39.06 GBP | 44.29 GBP | +5.23 GBP |
| UK Natural Gas (December-25-Future) | 101.42 GBP | 104.52 GBP | +3.10 GBP |
| ICE Brent Crude Oil (December-25-Future) | 67.88 USD | 67.81 USD | -0.07 USD |
| EURO (Forex) | 1.0834 USD | 1.0879 USD | +0.0045 USD |
(EUA. UKA, Natural Gas, 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 emission allowances 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