Emissions Trading / Carbon Market News (24/10/2022)

Dear Madam or Sir,

Despite the Ukraine war and the associated increased use of coal in Asia and Europe for energy production, global emissions of carbon dioxide will only increase by less than 1% in 2022 according to calculations by the International Energy Agency (IEA).

According to the head of the IEA, Fatih Birol, this is due to the increased worldwide expansion of renewable energies, above all photovoltaics and wind power, which increased by 700 terawatt hours. Furthermore, the increased use of electromobility has made a significant contribution to the reduction in the transport sector.

Last Wednesday, the responsible committee for energy and climate protection in the Bundestag decided that, contrary to the original plans of the federal government, waste incineration would be postponed by a year and should therefore not be included in national emissions trading in 2023, but only in 2024 in accordance with the Fuel Emissions Trading Act (BEHG).

The prices for CO2 certificates in the mandatory EU emissions trading system (EU ETS) moved sideways in the past week in a range between 66.26 and 69.69 euros.

A total of 12,494,500 EUAs will be auctioned on the EEX this week on all five trading days, as well as any desired quantity of national German emission certificates for 2022 on Tuesday and Thursday.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)67.95 EUR69.03 EUR+1,08 EUR
EUA (December-2022-Future)68.03 EUR69.10 EUR+1.07 EUR
VCU (Voluntary Carbon Units ø)7.89 USD6.38 USD-1.51 USD
VER (Gold Standard Spotmarkt ø)3.76 USD3.20 USD-0.56 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)91.80 USD93.52 USD+1.72 USD
EURO (Currency, Forex)0.9721 USD0.9862 USD+0.0141 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