Emissions Trading / Carbon Market News (29/11/2021)

Dear Sir or Madam,

In Germany, the coalition negotiations have come to an end and the new government consisting of the SPG, Greens and FDP, which will soon begin, wants to set clear accents in the area of ​​climate protection.

There should be a minimum price of 60 euros per ton of CO2 or its equivalent for greenhouse gas emissions and climate money, which should particularly benefit households with low incomes. These should also receive a one-off heating cost allowance.

The cost of CO2 certificates in national emissions trading should not be increased any further due to the already high energy prices.

Furthermore, the EEG surcharge is to be discontinued from 2023, which in particular should lower electricity prices and thus also serve electromobility.

The high prices for CO2 emissions alone make the generation of electricity from coal increasingly unprofitable and transition technologies such as gas will move into the focus of energy supply companies until the further expansion of renewable energies has progressed sufficiently.

From 2025, all newly installed heating systems in residential buildings are to be operated on the basis of at least 65% renewable energies.

Only when vehicles with internal combustion engines are phased out there should not be an end date in Germany, as is the case in many other markets. However, from 2023 only vehicles with a demonstrably positive climate effect will be funded, which can also travel at least 80 kilometers electrically, which is aimed at plug-in hybrids.

The market for EU emission rights reacted clearly bullish to the plans of the largest European economy and rallied on Thursday with a new all-time high of EUR 75.05.

Since the financial markets reacted very clearly to the new South African virus mutation and impending further lockdowns towards the end of the last week of trading, the EUA could not take this high-altitude flight with them until the end of the week, but closed with a plus of 3.41 euros confidently above the 70- Euro mark. At today’s start of trading, however, the EUA reached another all-time high, which is now at EUR 75.25.

In the national German emissions trading system, there are now six more dates in the next three weeks, on Tuesdays and Thursdays, at which companies subject to the tax can still buy regularly at a price of 25 euros.

If you have any further questions, please do not hesitate to contact our consultants.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)69.36 EUR72.77 EUR+3.41 EUR
EUA (December-2021-Future)99.36 EUR72.78 EUR+3.42 EUR
CER (Voluntary Spot-Market ø)4.78 USD4.78 USD+0.00 USD
VER (Gold Standard Spotmarkt ø)13.69 USD13.69 USD+0.00 USD
ICE Brent Crude Oil (Benchmark Future)78.43 USD72.82 USD-5.61 USD
EURO (Currency, Forex)1.1282 USD1.1316 USD+0.0034 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