Emissions Trading / Carbon Market News (25/09/2023)

Dear Madam or Sir,

A few weeks ago, we reported on the US billionaire Tom Steyrer, who will continue to expand the real estate portfolio of his investments over the next three years and make them climate-neutral (“Net Zero”) within three years.

His company Galvanize Climate Solutions has now taken the first step by raising one billion US dollars towards “Net Zero”, thereby securing the path for climate-neutral real estate.

Tom Steyrer is clear that properties that cannot be operated in a climate-neutral manner will pose a problem for every portfolio in the coming years.

Accordingly, the IGP Group’s services in Europe are tailor-made to accompany existing properties on their way to Net Zero. With IGP Green Solutions GmbH (www.igp.green), we bundle all of our group’s competencies in addition to CO2 emissions trading and offer property owners the path to climate neutrality and thus to maintaining and increasing value.

To begin with, our engineers will work out a plan on how we can implement renewable energy for the buildings and optimize energy efficiency. We will then show you the path to “Net Zero”, which can then be implemented modularly in stages. Starting from renewable energies to the use of hydrogen in a neighbourhood solution.

For larger operators, financing is often achieved through the elimination of the emissions trading obligation and receipt of funding, which is bundled in the overall concept. But existing owners of residential or commercial properties also benefit from these future solutions.

The prices for CO2 emission rights in the EU emissions trading rose by almost 4% last week and have broken the 85 euro mark again. Technical indicators made the difference here. The 38-day line was an important resistance here and the 80-euro-mark should be a good limit on the downside. The 200-day line is currently at 86.79 euros and could be seen as a barrier, especially since profit-taking could be expected.

This week, a total of 14,601,000 EUAs will be auctioned on the Leipzig EEX on all five trading days. The demand for the auctions will certainly be in the interests of market participants.

  (Average Quotes Exchange / OTC)   
EUA (December-2023-Future)82.31 EUR85.48 EUR+3.17 EUR
VER (Natural Carbon Offsets)1.77 USD2.29 USD+0.52 USD
VER (CORSIA eligible Carbon Offsets)0.71 USD0.75 USD+0.04 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)94.16 USD93.54 USD-0.62 USD
EURO (Currency, Forex)1.0658 USD1.0644 USD-0.0014 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