Emissions Trading / Carbon Market News (21/03/2022)

Dear Madam or Sir,

The Federal Environment Agency, together with the Federal Ministry for Economic Affairs and Climate Protection, has issued a press release on the development of greenhouse gas emissions in Germany in 2021. All in all, the figures show that after a strong decline in 2020, emissions rose again significantly, by a good 33 million tonnes or 4.5 percent.

The rise is particularly noticeable in the energy sector: This shows a plus of 27 million tonnes of CO2-equivalents, as more coal was used for electricity generation due to increased electricity demand, lower electricity generation from renewable energies and the higher price of gas. Electricity generation from renewables fell by seven per cent, mainly due to poor wind conditions.

German State Secretary for Climate Patrick Graichen commented: “The rise in greenhouse gas emissions has unfortunately been on the horizon. The German government will now quickly counteract this with an immediate climate protection programme. The key is a much faster pace in the expansion of renewable energies. We must manage to install three times as much capacity as before in order to increase the share of renewables in electricity generation to 80 percent by 2030. There must be no more of the kind of deadlock that we have seen in recent years. The Russian war of aggression on Ukraine has also made it dramatically clear to us how closely security and energy supply are linked. … The faster transition away from fossil energies must encompass all areas – from industrial production and buildings to mobility and agriculture. The decisive factor here is to maintain the social balance.”

Since 1990, emissions in Germany have thus fallen by only 38.7 percent. The target for 2030 is a minus of 65 percent. The available data show that since 2010, the energy turnaround in particular has contributed to the reduction of emissions. All other significant sectors have more or less stagnated since 2010. As a meeting of EU environment ministers last Thursday showed, a growing number of EU member states are willing to support a second emissions trading system for buildings and transport.

European pollution allowances saw a significant sideways movement in a range of 76 – 80 euros during the past trading week. At the end of the week, EUAs were even traded in their narrowest weekly range since the end of 2021, as the 80-euro mark apparently acted like a magnet and at the same time represented a stable technical resistance.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)76.38 EUR78.84 EUR+2.46 EUR
EUA (December-2022-Future)76.39 EUR78.89 EUR+2.50 EUR
VCU (Voluntary Carbon Units ø)7.32 USD8.42 USD+1.10 USD
VER (Gold Standard Spotmarkt ø)9.32 USD8.00 USD-1.32 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)112.40 USD108.21 USD-4.19 USD
EURO (Currency, Forex)1.0912 USD1.1091 USD+0.0179 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. VCUs and VERs are average prices (CBL markets). 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.)

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With kind regards,

Advantag Services GmbH