Emissions Trading / Carbon Market News (25/03/2024)

Dear Madam or Sir,

The national emissions trading scheme (nEHS) in Germany will end in 2027, as it will be transferred to the EU emissions trading system EU ETS II. In the nEHS, the emission of one tonne of CO2 for fossil fuels currently costs €45, compared to €30 in the previous year. And in 2026 the costs will continue to be capped at €65 per tonne despite free pricing.

From the transition to the EU ETS II, it could be more than 200 euros per tonne as early as 2027, which means a considerable additional burden for companies and private households.

For this reason, the German federal states have now called on the federal government to create the conditions for paying out the citizens’ allowance this year and to pay it out from 2025.

Pragmatic thinkers simply cannot understand what the problem with this is. After all, pretty much the first thing a person in Germany receives is their personal tax ID and with the help of this and a corresponding bank account number, the money could also be paid out technically.

For the fourth time in a row, the price in the EU ETS rose by just under 4% at the end of the week. Technically, it has thus closed above the 38-day line and held at a resistance line slightly above the EUR 62 mark. If a stable upward trend channel forms here, the next technical resistance would be in the EUR 67 area.

Due to Good Friday, 11,608,500 EUA will be auctioned on the EEX this week. Next week there will only be 7,995,000 EUA due to Easter Monday and the absence of the Polish auction.

On the other hand, in addition to the Easter holidays, the higher temperatures this week could have a bearish effect on the carbon price.

We wish you a happy Easter holiday!

    (Average Quotes Exchange / OTC)       
EUA (December-2024-Future)59.39 EUR61.51 EUR+2.12 EUR
VER (Natural Carbon Offsets)1.22 USD0.99 USD-0.23 USD
VER (CORSIA eligible Carbon Offsets)0.42 USD0.43 USD+0.01 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)84.89 USD85.01 USD+0.12 USD
EURO (Currency, Forex)1.0887 USD1.0807 USD-0.0080 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