Emissions Trading / Carbon Market News (28/02/2022)

Dear Madam or Sir,

Putin’s long-prepared invasion of Ukraine has exposed a number of national and international mistakes and deficits which cannot be remedied or compensated for overnight. This repugnant act was described by Chancellor Scholz as a “turning point in time”, which is undoubtedly correct. What is questionable is where this turn of the times will lead. The previous international security policy has at least partly collapsed like a house of cards.

With the sanctions adopted so far, an alliance of states is trying to isolate the aggressor and its supporters politically and economically and thus ruin them financially. Whether this will succeed remains to be seen, while hundreds of millions of foreign currencies are pumped into the Russian war chest every day because states around the globe continue to import Russian oil, gas and coal. A fact that is absolutely obvious in a globalised world, but difficult to bear in this situation. Everyone has to ask themselves how far solidarity goes, how many hardships, deprivations and cuts in their own prosperity they are willing to sacrifice. As one commentator aptly put it: “There is no such thing as freedom for free”.

The international financial markets have logically reacted sensitively. The market for European pollution rights has also fallen back as an immediate reaction, although the loss over the course of the week does not show this so clearly. However, just before the Russian troops invaded, the EUAs were already close to the 96 euro mark again and then lost around 10 euros. Overall, however, market participants seem to expect prices to rise again. If more energy had to be generated from coal, then unfortunately emissions would also rise and with them the need for certificates. In today’s early trading, however, the price started lower again and is now charting above the 84 euro mark.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)89.05 EUR87.74 EUR-1.31 EUR
EUA (December-2022-Future)89.47 EUR88.14 EUR-1.33 EUR
VCU (Voluntary Carbon Units ø)10.77 USD9.44 USD-1.33 USD
VER (Gold Standard Spotmarkt ø)9.00 USD10.27 USD+1.27 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)91.17 USD94.40 USD+3.23 USD
EURO (Currency, Forex)1.1319 USD1.1272 USD-0.0047 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. VCUs and VERs are average prices (CBL markets). 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