Emissions Trading / Carbon Market News (31/01/2022)

Dear Madam or Sir,

The first major storm in 2022 is causing severe damage in northern Germany with wind speeds of hurricane force in northern Germany and in Great Britain. In addition to fallen trees and failed trains, a storm surge flooded the fish market in Hamburg-Altona.

This is due to a long-standing constellation of a high over western Europe and a low in the direction of North America, which has resulted in persistently cloudy, but mostly mild weather in Germany in recent weeks.

Now many will say that storms and grey weather are nothing unusual in Germany. That is correct so far, but the duration of the constellation of the stuck low and high over western Europe is related to the change in the jet stream, the intensity of which has measurably changed over the past two decades. And that has to do with climate change, as global warming has reduced the temperature differentials that drive the jet stream.

Weather conditions can also persist in other constellations over weeks or months, as was the case in the drought summer of 2018. So if a constellation between several summer highs is established over Central Europe, there can be periods of drought, which bring agriculture and forests to their breaking point, or in a similar constellation as now, this can mean a rainy summer with sometimes heavy rain events, like we are experiencing have experienced in the past year.

CO2 emission allowances have been bullish again over the past week, with the EUA December contract trading briefly above the EUR 90 mark last Friday at EUR 90.63. This was thanks to a bullish energy environment, with Brent crude holding above the USD 90 level.

This week, 11,949,000 EUA will be auctioned again at the Leipzig EEX and on Tuesdays and Thursdays nEZ from national emissions trading can already be auctioned for 2022 at a price of EUR 30.00 or at a price of EUR 25.00 for the previous year, insofar as there are still sufficient contingents within the framework of the 10% additional purchase rule.

  (Average Quotes Exchange / OTC)   
EUA (Spot-Market)84.42 EUR89.48 EUR+5.06 EUR
EUA (December-2022-Future)84.47 EUR89.92 EUR+5.45 EUR
VCU (Voluntary Carbon Units ø)7.14 USD7.51 USD+0.37 USD
VER (Gold Standard Spotmarkt ø)7.38 USD7.55 USD+0.17 USD
nEZ (German National Carbon Units)30.00 EUR30.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)87.67 USD90.59 USD+2.92 USD
EURO (Currency, Forex)1.1347 USD1.1131 USD-0.0216 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