Dear Sir or Madam,
Although it is not a topic often discussed in public, China has also introduced a national emissions trading scheme similar to the European Union Emissions Trading Scheme (EU ETS), which is being gradually expanded to include, amongst others, the chemical and petrochemical industries. As a result, around 80 per cent of Chinese emissions are set to be subject to pricing in the not-too-distant future.
In the first seven months of this year, around 930 million allowances were traded on the Chinese ETS, each representing the emission of one tonne of CO2 or its equivalent in other greenhouse gases.
In this way, China also aims to create incentives for reducing greenhouse gas emissions in order to drive forward decarbonisation. For it is not only Europe that is suffering increasingly from the consequences of human caused climate change, but China too. Heatwaves and the ever-melting glaciers in the Himalayas are also posing immense challenges for businesses and domestic agriculture there.
Last week, oil and gas prices rose further, and the fact that Germany’s gas storage facilities are currently barely half full, whilst the Strait of Hormuz is allowing only a few cargo ships through, is unlikely to prompt prices to fall.
Despite rising prices for fossil fuels, EUAs have remained well above the 80-euro mark and recorded a gain of around one per cent on a closing price basis for the week.
Last week, the 65-euro rule in Germany’s national emissions trading scheme came to an end, meaning that only a volume of 10,670,528 nEZ26 was allocated at the maximum price of 65 euros. The volume of bids fell by around 18 million allowances to 528 million, resulting in an allocation rate of 2.02 per cent with a cover ratio of 49.5.
In our penultimate edition of the market report dated 10 August 2026, we wrote that the final auction within the price corridor of 55 to 65 euros was expected to take place on 2 September 2026, in accordance with the BEHG, with 21 million allowances, provided the remaining volume fell below the threshold of 32,013,000. However, we failed to take into account that two further auctions are due to take place from that point onwards, meaning that the final auction will take place on 9 September 2026. We apologise for this oversight. Consequently, 10.67 million shares will be auctioned in each of the remaining three auctions.
From calendar week 45 onwards, unlimited additional purchases can be made for one month at a price of 68 euros on Tuesdays and Wednesdays. The first auction will therefore be on 3 November, and the last on 3 December 2026.
Next year, under the 10 per cent top-up scheme, certificates held in the relevant register account as at 31 December 2026 may be ordered at a price of 70 euros.
| Instrument | 14/08/26 | 21/08/26 | Change |
| EUA (December-2026-Future) | 81.79 EUR | 82.61 EUR | +0.82 EUR |
| EUA2 (December-2027-Future) | 66.55 EUR | 66.55 EUR | +0.00 EUR |
| nEZ26 (national German Emission Certificates) | 65.00 EUR | 65.00 EUR | +0.00 EUR |
| UKA (December-2026-Future (UK)) | 58.89 GBP | 59.49 GBP | +0.60 GBP |
| UK Natural Gas (December-2026-Future) | 156.34 GBP | 168.30 GBP | +11.96 GBP |
| ICE Brent Crude Oil (December-2026-Future) | 84.39 USD | 89.99 USD | +5.60 USD |
| EURO (Forex) | 1.1579 USD | 1.1678 USD | +0.0099 USD |
(EUA, EUA2, UKA, Natural Gas, Crude Oil and Euro Currency shows day-end-exchange quotes of the benchmark contract. This market information has just an informational character and are no advice or offer to trade emission allowances 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 or book here a call with one of our specialists.
With kind regards,
Your Advantag – Team