Emissions Trading / Carbon Market News (22/08/2022)

Dear Madam or Sir,

Russia has announced that it will undergo further maintenance on the Nord Stream 1 gas pipeline and will probably not deliver gas for three days from August 31, 2022 on, according to the Russian state-owned company Gazprom. Its European subsidiaries have now changed their name from Gazprom to SEFE, as announced earlier this month. The former Gazprom Marketing & Trading Limited is now called SEFE Marketing & Trading Limited and its subsidiaries no longer start with Gazprom, but with SEFE, which paradoxically is supposed to be the abbreviation for Securing Energy for Europe.

This renewed suspension of gas deliveries caused both gas and coal prices to skyrocket, followed by electricity. This rose to 570 euros per megawatt hour (German year-ahead-power), which industry and consumers are clearly feeling.

The high demand for climate-damaging coal energy ultimately also influences the demand for CO2 emission rights (EUA), which with an all-time high of EUR 99.22 in the December futures last Friday just missed the EUR 100 mark.

And on a weekly basis, the EUA gained more than 10% and closed the trading week just above the EUR 98 mark in the December futures contract.

It is difficult to predict how prices will develop in the coming week as EUAs are technically clearly overbought and a healthy correction into the sub-€90 area would be in order.

The course gets bullish support from the fact that in the new trading week only 4,421,500 EUA will be auctioned in Leipzig and the summer break with halved auction volumes will last until the end of the month. In addition, further rising energy prices could ensure that the EUA could test the 100 mark.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)88.58 EUR97.82 EUR+9.24 EUR
EUA (December-2022-Future)88.87 EUR98.01 EUR+9.14 EUR
VCU (Voluntary Carbon Units ø)7.87 USD8.36 USD+0.49 USD
VER (Gold Standard Spotmarkt ø)3.97 USD4.09 USD+0.12 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)97.87 USD95.71 USD-2.16 USD
EURO (Currency, Forex)1.0257 USD1.0202 USD-0.0055 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