Emissions Trading / Carbon Market News (27/06/2022)

Dear Madam or Sir,

This time, the proposal by the EU Parliament to reform the EU emissions trading scheme was adopted by a large majority of 439 votes in favour, 159 against and 32 abstentions.

This is an important step towards reforming emissions trading. This position is now going into the forthcoming negotiations with the EU countries, where dissenting voices are to be expected, particularly in countries that are highly dependent on fossil fuels.

However, the opponents of a tightening of emissions trading should not forget that otherwise the goals of the Paris climate protection agreement would not even begin to be achievable. A further weakening of this second compromise proposal, which of course was again based on the lowest common denominator, would also considerably weaken not only Europe’s role model function but also its negotiating position as the third largest global emitter of greenhouse gases.

The prices for European emission allowances (EUA) showed a slight recovery in the past week on a weekly closing basis, as in the week before. The December 2022 benchmark futures contract on the ICE traded in a range of EUR 81.20 and EUR 85.43.

This week, a total of 8.83 million EUAs will be auctioned at the Leipzig EEX.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)82.24 EUR83.29 EUR+1.05 EUR
EUA (December-2022-Future)82.37 EUR83.43 EUR+1.06 EUR
VCU (Voluntary Carbon Units ø)9.20 USD8.78 USD-0.42 USD
VER (Gold Standard Spotmarkt ø)4.45 USD3.96 USD-0.49 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)114.54 USD113.05 USD-1.49 USD
EURO (Currency, Forex)1.0495 USD1.0506 USD+0.0011 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