Emissions Trading / Carbon Market News (27/11/2023)

Dear Madam or Sir,

The missing billions in the German budget have serious effects on many areas of the economy.

The German economy is now being dubbed the “sick man of Europe” by “The Economist” and real estate prices in Germany have also fallen the most in a European comparison, with construction costs having risen the most in Europe.

Since real estate is responsible for around 40% of global emissions, it is a devastating signal from the current federal government that it is not providing sufficient funds to avert the construction crisis and is unable to adequately promote climate-friendly buildings. There is an urgent need for action here.

In order to generate the money needed, the German think tank Agora Energiewende has now brought into play an increase in the carbon price in German national emissions trading from the current 30 euros per ton to 60 instead of the previous 40 euros for 2024. This would secure 6.6 billion euros next year.

Ottmar Edenhofer, director of the Potsdam Institute for Climate Impact Research (PIK), also calls for a significant increase in the prices for carbon emissions in order to achieve an appropriate steering effect as quickly as possible and to generate sufficient income for the green transformation.

However, the current government still seems unable to implement the urgently needed climate money for German citizens to alleviate social problems caused by higher energy prices – a disgrace for politics and administration.

Prices in EU Emissions Trading System barely moved on a weekly closing basis within a range of EUR 74.65 to EUR 77.80. Nevertheless, at EUR 76.60, they are still well below the 38-day line (EUR 80.56) and the 200-day line (EUR 85.49) and thus show the ongoing bearish sentiment.

Companies subject to the EU compliance trading could potentially use the current market situation to cover parts of their 2023 portfolio.

And for the participants in Germany’s national emissions trading in accordance with BEHG, the last four trading days have begun this and next week. The absolute last trading day on EEX this year is December 7, 2023 during trading hours from 9:00 a.m. to 3:00 p.m.

Since only 10% of the volume in the register account as of December 31, 2023 can be purchased for 2023 at the current price of EUR 30.00, it is advisable to promptly and adequately stock up on 2023 national emission certificates.

      (Average Quotes Exchange / OTC)   
EUA (December-2023-Future)76.55 EUR76.60 EUR+0.05 EUR
VER (Natural Carbon Offsets)1.22 USD0.99 USD-0.23 USD
VER (CORSIA eligible Carbon Offsets)0.78 USD0.67 USD-0.11 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)80.49 USD80.03 USD-0.46 USD
EURO (Currency, Forex)1.0914 USD1.0933 USD+0.0019 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