Emissions Trading / Carbon Market News (20/11/2023)

Dear Madam or Sir,

Germany is now missing 60 billion euros from the climate and transformation fund after the Federal Constitutional Court ruled last week. These funds were originally intended to deal with the Corona crisis, but they should now be used to finance climate policy projects.

As a result, German budget planning has enormous problems that can only be solved through two measures – increasing revenue through taxes and duties or reducing planned expenditure. The FDP will probably not agree to the former, and the other two coalition parties will certainly not agree to the latter.

The next few weeks will remain interesting, especially since Monika Schnitzer, the chairwoman of the German federal government’s economic advisory committee has now brought an exception to the debt brake into play.

After the prices for European emissions rights were quite bullish until the middle of last week, they collapsed on Thursday and ended with a significant loss of more than 2% on a weekly closing price basis, thus joining the overall weakening energy complex of the last few days.

This week, 14,601,000 EUAs from tranches from the EU, Poland and Germany will be auctioned on EEX on all five trading days.

This year, in the German national emissions trading system, auctions will only be held on Tuesdays and Thursdays this week and the following two weeks. Due to the price increase from 30 to 40 euros next year, traders should calculate particularly carefully this year, as in the following year you can only buy 10% for the old year at a price of 30 euros.

      (Average Quotes Exchange / OTC)   
EUA (December-2023-Future)78.70 EUR76.55 EUR-2.15 EUR
VER (Natural Carbon Offsets)0.86 USD1.22 USD+0.66 USD
VER (CORSIA eligible Carbon Offsets)0.56 USD0.78 USD+0.22 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)81.55 USD80.49 USD-1.06 USD
EURO (Currency, Forex)1.0684 USD1.0914 USD+0.0230 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,

ADVANTAG Services GmbH