Emissions Trading / Carbon Market News (30/05/2022)

Dear Madam or Sir,

The meeting of the G7 climate protection, energy and environment ministers came to an end last Friday.

One of the most important points here is that the G7 countries have, for the first time, committed themselves to achieving a predominantly decarbonised electricity supply by 2035 and ending coal-fired power generation in the process. Furthermore, direct international public financing of fossil fuels is to be phased out by the end of this year. Inefficient fossil fuel subsidies are to be phased out by 2025, and by 2030 a highly decarbonised transport sector is to prevail in the G7 countries.

Measures to protect species and the sea, against plastic pollution and for resource efficiency were also decided. The main results of the meeting were recorded in a joint communiqué from all G7 countries.

After the price losses of the previous week, the price for European emission allowances has recovered somewhat and there is still hope that the European Commission’s proposal to auction up to an additional 250 million EUAs will not be accepted or will only be accepted in a significantly weaker form.

Because capital, raw material and energy markets live from the trust of market participants in the system, which falters when such serious interventions are carried out. In addition, the possible price loss and the price gains that did not materialize would be responsible for the fact that visibly less revenue would be achieved in the auctions that have already been planned. This will also happen if speculative institutional investors were alienated. For this reason, the EU would be well advised to thoroughly reconsider such thoughts regarding the universal principle of cause and effect.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)80.24 EUR84.08 EUR+3.84 EUR
EUA (December-2022-Future)80.39 EUR84.20 EUR+3.81 EUR
VCU (Voluntary Carbon Units ø)10.53 USD10.76 USD+0.23 USD
VER (Gold Standard Spotmarkt ø)4.73 USD4.73 USD+0.00 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)112.87 USD115.08 USD+2.21 USD
EURO (Currency, Forex)1.0562 USD1.0732 USD+0.0170 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. The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. 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