Emissions Trading / Carbon Market News (28/06/2021)

Dear Sir or Madam,

According to market rumors, the European Commission is expected to present its new reform proposals for the European emissions trading system on July 14, 2021. The news service Bloomberg reports that the upper limit of the annual maximum emissions is to be reduced earlier than currently valid in order to be in line with the EU reduction target of 55% of greenhouse gas reductions compared to 1990 by 2030.

From 2026, the annual reduction factor is therefore to be increased from currently 2.2% of the reductions, and there is also to be a one-off reduction in the amount of allowances to be auctioned. The amount is not yet known.

The European Commission is also looking into how it can involve other sectors such as shipping, buildings and transport. Shipping is to be completely included in EU emissions trading from 2026.

Due to these first rumors and the continuing rise in oil prices, the prices for EUAs were again extremely bullish and moved towards 56 euros at the end of the last trading week. The trading week closed with a significant plus of more than 6% in a weekly comparison.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)51.80 EUR54.92 EUR+3.12 EUR
EUA (December-2021-Future)51.90 EUR55.05 EUR+3.15 EUR
CER (Voluntary Spot-Market ø)3.02 USD3.02 USD+0.00 USD
VER (Gold Standard Spotmarkt ø)15.86 USD15.86 USD+0.00 USD
ICE Brent Crude Oil (Benchmark Future)73.23 USD76.11 USD+2.88 USD
EURO (Currency, Forex)1.1862 USD1.1936 USD+0.0074 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. CERs and VERs are average prices in the voluntary carbon offsetting market (eco securities). 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