Emissions Trading / Carbon Market News (18/09/2023)

Dear Madam or Sir,

Shipping traffic will be subject to compliance in the EU emissions trading from January 1st, 2024. However, this only starts with 40% of emissions next year and then rises to 100% of emissions caused by 2026, provided that ports are called in the EU or nearby.

Initially only ships with 5,000 gross registered tons or more are affected; this limit will drop to 400 gross registered tons in 2027.

Daniel Gent is energy and sustainability manager at the car transport shipping company UECC and expects the price of a ton of ship diesel to increase by around 117 euros next year and by around 293 euros in 2026, although rising prices for emission rights are quite different numbers could reach.

Shifting the costs to the clients and ultimately their customers is one possible way, but here too those ship fleet operators who succeed in advancing the decarbonization of their fleet will have a corresponding competitive advantage.

Last Wednesday, EU emissions rights prices visibly rose, but EUAs were unable to maintain the momentum until the end of the trading week. Accordingly, based on the weekly closing price, they only closed with a moderate gain of less than one percent.

In the new trading week, 11,524,500 EUA and 775,500 EUAA for the aviation industry will be auctioned on the EEX. However, these can now also be used for stationary systems to fulfil their compliance obligations.

This Thursday will be the last time that national German emissions certificates for 2022 will be auctioned off. Even if these have the same price of EUR 30.00 as for 2023, one should take part in the fixed-price auction on that day at the latest to ensure that you can meet your submission obligation for 2022 on September 29, 2023 and the transfer deadlines taken into account.

If you have any questions, your contact person at Advantag will be happy to assist you.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)80.71 EUR81.53 EUR+0.82 EUR
EUA (December-2023-Future)81.52 EUR82.31 EUR+0.79 EUR
VER (Natural Carbon Offsets)1.70 USD1.77 USD+0.07 USD
VER (CORSIA eligible Carbon Offsets)0.87 USD0.71 USD-0.16 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)90.41 USD94.16 USD+3.75 USD
EURO (Currency, Forex)1.0701 USD1.0658 USD-0.0043 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