Emissions Trading / Carbon Market News (22/05/2023)

Dear Madam or Sir,

Prof. Dr. Matthias Kalkuhl is leader of the MCC working group on economic growth and human development and leader of the Ariadne work package on tax reform. Together with 14 other scientists, he carried out the Kopernikus project Ariadne for the Potsdam Institute for Climate Impact Research (PIK) and developed options for using the income from carbon emissions pricing.

In their published dossier, they determined that within the framework of German national and European emissions trading systems, Germany would benefit from a total of up to 227 billion euros between 2021 and 2030, which would be transferred to the climate and transformation fund and earmarked for measures related to energy and climate policy.

The following five options were considered: payment of climate money, reduction in electricity tax, reduction in income tax, targeted compensation for hardship cases and support programs. These were analyzed on the basis of their economic effects (labour and investment incentives), emissions impact, distribution impact, administrative burden, efficiency and social acceptance.

Carbon pricing and the use of funds should be made more transparent in order to give the population a better understanding of the effects and benefits of CO2 prices and relief measures, such as climate money, for low-income households. You can find the entire dossier at www.ariadneprojekt.de.

In the last trading week shortened by the holiday, the price of EU emission allowances continued to move slightly higher on reduced trading volume and EUAs closed 1.6% on a weekly closing basis.

A total of 11,842,500 EUAs will be offered for auction on all five trading days this week at the European Energy Exchange, before only 6,757,500 units will be auctioned the following week due to Whit Monday.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)87.02 EUR88.55 EUR+1.53 EUR
EUA (December-2023-Future)88.48 EUR89.88 EUR+1.40 EUR
VER (Natural Carbon Offsets)1.70 USD1.45 USD-0.25 USD
VER (CORSIA eligible Carbon Offsets)1.38 USD1.15 USD-0.23 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)74.15 USD75.76 USD+1.61 USD
EURO (Currency, Forex)1.0836 USD1.0794 USD-0.0042 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