Emissions Trading / Carbon Market News (28/03/2022)

Dear Madam or Sir,

Russia’s war against Ukraine was also the dominant topic on the financial, energy and commodity markets last week.

Even if you could see it in Germany’s Economics Minister Habeck, he has entered into a long-term energy partnership with Qatar, in particular for the supply of liquefied natural gas (LNG) in the coming years. Qatar is one of the world’s most important producers of liquefied natural gas. And so that at least a slight green can be seen, Habeck emphasized that the agreed partnership not only includes liquid gas, but also the expansion of renewable energies combined with further energy efficiency measures.

The German federal government thus intends to reduce the share of gas from Russia to around 30 percent by the end of 2022. By early April, the Russian share is expected to drop by 15 percent to just 40 percent.

US President Joe Biden, together with EU Commission President Ursula von der Leyen, also announced increased deliveries of liquid gas from the USA to the EU in Brussels. By 2030, Europe should have continued demand for additional LNG of at least 50 billion cubic meters per year from the US, equivalent to a third of the volume of Russian gas currently coming to Europe. US imports are expected to replace a tenth of Russian imports this year. In addition to the USA, the EU Commission is also negotiating with Qatar, South Korea, Azerbaijan and Japan.

In order to diversify supplies, the EU Commission is also in contact with countries such as Qatar, Azerbaijan, Japan and South Korea. The federal government wants to reduce the share of Russian gas in Germany to about 30 percent by the end of the year. By the end of this month, the share should be only 40 percent instead of the previous 55 percent.

With a view to the approaching end of the submission deadline at the end of the 17th calendar week, EU emission allowances could show bullish tendencies again, especially if there are signs of relaxation in Ukraine. From this point of view, it may be advisable to obtain at least some of the certificates that are still to be obtained for the compliance portfolio.

This week, regular auctions for a total of 12,786,000 EUAs will take place at EEX on all five working days.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)78.84 EUR78.31 EUR-0.53 EUR
EUA (December-2022-Future)78.89 EUR78.60 EUR-0.29 EUR
VCU (Voluntary Carbon Units ø)8.42 USD8.95 USD+0.53 USD
VER (Gold Standard Spotmarkt ø)8.00 USD8.54 USD+0.54 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)108.21 USD119.31 USD+11.10 USD
EURO (Currency, Forex)1.1091 USD1.0981 USD-0.0110 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