Emissions Trading / Carbon Market News (24/01/2022)

Dear Madam or Sir,

Never before has the global community been so united across all political and economic divides as at the Paris Agreement. At the UN World Climate Conference in December 2015, 197 countries agreed on a global climate protection treaty. The states set themselves the goal of limiting global warming to 1.5 degrees Celsius compared to the pre-industrial era. In addition, the capacity to adapt to climate change should be strengthened and the flow of financial resources should be brought in line with the climate goals.

To actually achieve these goals, not only must each state make a truly serious effort on its own, but governments must also be prepared to cooperate and act in a coordinated manner with one another. Against this background, we can only shake our heads at the political theatre that the world powers are putting on in defiance of the global threat of climate change.

The weekly look at European emissions trading shows a modest one-week gain in EUA’s. At the beginning of the trading week, analysts at an investment bank had raised their forecast for 2023 to EUR 150, citing the severe shortage of allowances as the reason. Almost to confirm this, the auction on Thursday saw the highest number of bids in nearly a year, whereupon numerous unsuccessful bidders rushed to the secondary market and pushed the price up by a good EUR 3.50. Since then we have seen a sideways movement in a range between 84 and 86 euros. Now that the companies know their verified figures for 2021 and the deadline for fulfilling the surrender obligation is approaching, significantly falling prices are unlikely until April.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)82.03 EUR84.42 EUR+2.39 EUR
EUA (December-2022-Future)82.08 EUR84.47 EUR+2.39 EUR
VCU (Voluntary Carbon Units ø)8.31 USD7.14 USD-1.17 USD
VER (Gold Standard Spotmarkt ø)8.37 USD7.38 USD-0.99 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)86.46 USD87.67 USD+4.75 USD
EURO (Currency, Forex)1.1416 USD1.1347 USD-0.0069 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.)

Please call our international carbon desk if any further questions exist: +49.2831.1348220.

With kind regards,

Advantag Services GmbH