Emissions Trading / Carbon Market News (23/06/2024)

Ladies and Gentlemen,

The building sector is responsible for around 40% of global CO2 emissions.

S&B Strategy, a Munich-based strategy consultancy specialising in the construction sector, has published a new study that focuses on the goal of climate neutrality in the building sector by 2050.

According to the analysts, there are two ways to reduce CO2 emissions in this segment. The first option is to manage buildings using purely renewable energy, while the second option aims to increase the efficiency of buildings and thus minimise energy loss.

Here, the specialists at S&B consider the heating, roof, facade and window systems to be the most effective for achieving measurable results. As Germany is pursuing both options, climate neutrality cannot be realised without comprehensive building renovations. The analyses show that this will require investments of at least 1,200 billion euros, which, however, are not the key success factor under the current framework conditions.

Due to the shortage of skilled workers and personnel, S&B considers it imperative to improve efficiency in the construction sector in order to significantly improve the performance of existing human resources through prefabrication and standardisation.

This will ultimately also reduce the rising cost of CO2 emission allowances for fossil fuels in the building sector, which will make a significant contribution to financing.

Despite several attempts, carbon emission allowances in EU Emissions Trading System have not realized to break through the 200-day line, which currently stands at EUR 70.56, on a daily closing price basis, which is why the benchmark December 2024 contract closed down a small 15 cents on a weekly basis at EUR 68.13 per tonne of CO2.

In the new trading week, 11,094,500 new EUAs will be auctioned on only four auction days, as the Polish auction will not take place on Wednesday as scheduled.

    (Average Quotes Exchange / OTC)       
EUA (December-2024-Future)68.28 EUR68.13 EUR-0.15 EUR
VER (Natural Carbon Offsets)1.01 USD0.99 USD-0.02 USD
VER (CORSIA eligible Carbon Offsets)0.34 USD0.38 USD-0.04 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)82.60 USD85.18 USD+2.58 USD
EURO (Currency., Forex)1.0703 USD1.0691 USD-0.0012 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