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Emissions Trading / Carbon Market News (09/12/2024)

Dear Sir or Madam,

Last Thursday, the final auction for 2024 in the German national emissions trading system took place and the next auction is scheduled to take place in the second quarter of 2025, according to the German Emissions Trading Authority. Due to the deadline of September 30, 2025 for the emissions of 2024, this seems to be a negligible problem. However, companies that do not yet have all the necessary national emission certificates (nEZ) should already be devising an appropriate procurement strategy, and we would be happy to advise you on this.

In exactly one week, the last auction for EU emission rights in the EU ETS will also take place on the EEX, and it will remain interesting to see how prices will develop in view of this fact and the expiration of the December 2024 EUA futures contract on EEX and ICE, as well as the so-called “roll-over” into the next benchmark contract December 2025 by the end of the year.

In EU emissions trading, the deadline for surrendering emission rights for the year 2024 is also at the end of September 2025, with shipping companies with ships of more than 5,000 gross register tons participating in mandatory EU emissions trading for the first time this year. We are also happy to advise maritime companies in this area and, with our market-based procurement strategy, we also procure the required emission certificates.

Last week, EU emission rights fluctuated between 67.13 and 70.14 euros. After prices presented themselves bullishly in the middle of the week, the bears prevailed towards the end of the week in a rather negative environment on the energy market and closed with a moderate minus of nine cents or 0.13% compared to the previous week at 68.31.

This week, a total of 11,951,000 European Allowances (EUAs) will be auctioned on all five trading days at the Leipzig EEX, which represents an 18% decrease from the previous week, as only 198,000 EUAs will be offered at the Polish auction on Wednesday.

It will be interesting to see what the demand will be in the remaining six auctions this year.

    (Average Quotes Exchange / OTC)       
Instrument29/11/2406/12/24Change
EUA (December-2024-Future)68.40 EUR68.31 EUR-0.09 EUR
VER (Natural Carbon Offsets)0.40 USD0.36 USD-0.04 USD
VER (CORSIA eligible Carbon Offsets)0.44 USD0.46 USD+0.02 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)72.81 USD71.35 USD-1.46 USD
EURO (Currency.. Forex)1.0575 USD1.0568 USD-0.0007 USD

(The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. EUA. 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,

Your Advantag – Team

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Emissions Trading / Carbon Market News (02/12/2024)

Dear Sir or Madam,

We have now reached December 2024 and the end of this year’s auctions in German national emissions trading in accordance with the Fuel Emissions Trading Act (BEHG) and European emissions trading, which in Germany is regulated by the Greenhouse Emissions Trading Act (TEHG), is approaching.

In national emissions trading, the last auctions for this year will take place tomorrow and on Thursday on the European Energy Exchange (EEX) and companies that are obliged to submit allowances would be well advised not to wait until Thursday afternoon to place their orders and transfer funds, as technical failures or delays at the banks can always occur.

It is not yet clear when the first auctions will take place in 2025, but we do not expect them to take place until May 2025; the German Emissions Trading Authority has announced the second quarter.

In European emissions trading (EU ETS), the last auction of this year will take place on Monday, December 16, 2024. The first auction of the new year will be held exactly one month later on Tuesday, January 16, 2025.

According to the EEX, a total of 680,969,000 emission allowances are to be auctioned in 2025, including 11,544,850 for aviation. However, this makes no difference, as both EUAs for the aviation industry and EUAAs for stationary installations can now be used.

This week, a total of 14,582,500 EUAs will be auctioned on the EEX on all five trading days.

In the past trading week, these have ranged from 67.13 to 71.54 in the benchmark December 2024 contract. Prices remained in the upward trend channel until Thursday, which was also due to reports that the EU intends to impose minimum stocks for gas storage facilities for February 2025. On Friday, however, there was profit-taking, which caused prices for EUAs to fall by 1.26% at the end of the week.

    (Average Quotes Exchange / OTC)       
Instrument22/11/2429/11/24Change
EUA (December-2024-Future)69.27 EUR68.40 EUR-0.87 EUR
VER (Natural Carbon Offsets)0.32 USD0.40 USD+0.08 USD
VER (CORSIA eligible Carbon Offsets)0.25 USD0.44 USD+0.19 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)74.59 USD72.81 USD-1.78 USD
EURO (Currency.. Forex)1.0414 USD1.0575 USD+0.0161 USD

(The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. EUA. 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,

Your Advantag – Team

Posted on

Emissions Trading / Carbon Market News (25/11/2024)

Dear Sir or Madam,

The COP29 World Climate Conference in Baku, Azerbaijan, ended last weekend after an extension. The two most important results are, firstly, that the industrialised countries are to provide a total of 300 billion US dollars a year until 2035 for climate protection and adaptation to the consequences of climate change. Secondly, the parties agreed on new rules for global emissions trading, whereby companies and states can offset their greenhouse gas emissions by financing climate protection projects in other regions.

But the European Emissions Trading System (EU ETS) is also helping to finance climate protection: the EU has given Greece the green light for its decarbonisation fund, which will be financed with 25 million EUAs that were not allocated to the country in the previous phase of the EU ETS. The proceeds from this should pave the way for the climate neutrality of the Greek islands.

EU ETS prices temporarily exceeded the 70-euro mark last week. One of the reasons for this was the European Commission’s decision not to increase the volume of the approximately 86.7 million allowances to be auctioned under REPowerEU in the near term, as the market had expected, although the price in recent months was below the target price of more than 70 euros.

We would like to point out once again that only four auctions of national emission allowances valid for 2024 will take place in the next two weeks; the last auction will be on Thursday, 5 December 2024. After that, regular purchases on the EEX will only be possible for 10% of the quantity that will be on your registry account on 31 December 2024.

In agreement with the Federal Ministry for Economic Affairs and Climate Protection, the German Emissions Trading Authority has now decided to postpone the start of fixed-price auctions of national emission allowances on the EEX to 2025. The background to this is the ongoing parliamentary legislative process to amend the Greenhouse Gas Emissions Trading Act (TEHG-Europarechtsanpassungsgesetz 2024).

    (Average Quotes Exchange / OTC)       
Instrument15/11/2422/11/24Change
EUA (December-2024-Future)68.01 EUR69.27 EUR+1.26 EUR
VER (Natural Carbon Offsets)0.24 USD0.32 USD+0.08 USD
VER (CORSIA eligible Carbon Offsets)0.21 USD0.25 USD+0.04 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)71.20 USD74.59 USD+3.39 USD
EURO (Currency.. Forex)1.0540 USD1.0414 USD-0.0126 USD

(The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. EUA. 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,

Your Advantag – Team

Posted on

Emissions Trading / Carbon Market News (18/11/2024)

Dear Sir or Madam,

On the first day of this year’s UN Climate Change Conference COP29 in Azerbaijan, almost 200 countries agreed on new rules for global emissions trading, even though many of the framework conditions and rules still need to be worked out.

This emissions trading should enable states and companies to purchase CO2 certificates from climate protection projects and thereby offset their emissions. As with voluntary emissions trading, a certificate is generated for each tonne of CO2 or its equivalent of greenhouse gases avoided, which can then be traded and retired.

These rules have been in the works since the 2015 Paris Agreement on climate change, and since they were still very inadequate at last year’s COP28 in Dubai, they were rejected by the EU and developing countries.

Last Monday’s agreement has now laid the foundations for a global emissions trading market that functions according to international rules and only allows high-quality carbon credits to be used to offset unavoidable emissions, or emissions that cannot be avoided at a disproportionate cost.

Prices for European emission allowances have remained almost unchanged on a weekly basis, with the December benchmark contract for EUA futures continuing to move in an upward technical pennant within a range of 65.39 to 68.80 euros.

If this formation is maintained, the price would move in the range of approx. 65 to 69 euros this week, the 200-day line, which currently stands at 65.12, could also provide support. In addition, a total of 14,582,500 EUAs will be auctioned on the EEX on all five trading days.

For the procurement of national emission allowances for 2024, there are only six auctions left on Tuesdays and Thursdays at the EEX, in which we can participate for you. The last auction is on Thursday, 5 December 2024 and ends at 3:00 p.m.

    (Average Quotes Exchange / OTC)       
Instrument08/11/2415/11/24Change
EUA (December-2024-Future)68.02 EUR68.01 EUR-0.01 EUR
VER (Natural Carbon Offsets)0.23 USD0.24 USD+0.01 USD
VER (CORSIA eligible Carbon Offsets)0.10 USD0.21 USD+0.11 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)74.26 USD71.20 USD-3.06 USD
EURO (Currency.. Forex)1.0715 USD1.0540 USD-0.0175 USD

(The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. EUA. 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,

Your Advantag – Team

Posted on

Emissions Trading / Carbon Market News (11/11/2024)

Dear Sir or Madam,

Last week, Donald Trump was elected as the 47th President of the United States of America by a surprisingly large majority. As the 45th US President, he had already decided to withdraw from the Paris Agreement on climate change during his first term in office. It can be assumed that Trump will act accordingly again after his inauguration.

The 29th Conference of the Parties (COP29), the 29th World Climate Conference, begins today in Baku, the capital of Azerbaijan, and is scheduled to run until 22 November 2024. In view of the change of power in Washington, this topic will certainly be on the agenda.

Other topics at COP29 include payments to the countries of the so-called ‘global South’ that are most affected by climate change, as well as a new financing target from 2026.

It will also address Article 6 of the Paris Agreement and the associated market-based climate protection instruments and emissions offsetting mechanisms to combat the climate crisis. In addition, several other measures will be negotiated, such as a climate damage tax for polluting countries, technical solutions for greenhouse gas reduction, CO2 storage technologies and negative emissions technologies.

High hopes for breakthroughs in the negotiations, particularly with the largest global emitters, are likely to be in vain in Baku.

Last week, EU emission allowances rose sharply under the bullish influence of the electricity and gas market, closing the trading week up 6.5% on the previous week.

Technically, the path towards the 70-euro mark would be clear, but a relapse to the 200-day line, which is currently at 65.01, is also quite possible. Should one of these two marks be breached, either upwards or downwards, this could signal the short-term trend.

This week, a total of 11,749,000 EUA and, on Wednesday, 899,500 emission rights for the aviation industry (EUAA), which can also be used for stationary installations, will be auctioned on the European Energy Exchange.

    (Average Quotes Exchange / OTC)       
Instrument01/11/2408/11/24Change
EUA (December-2024-Future)63.87 EUR68.02 EUR+4.15 EUR
VER (Natural Carbon Offsets)0.40 USD0.23 USD-0.17 USD
VER (CORSIA eligible Carbon Offsets)0.44 USD0.10 USD-0.34 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)73.33 USD74.26 USD+0.93 USD
EURO (Currency.. Forex)1.0834 USD1.0715 USD-0.0119 USD

(The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. EUA. 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,

Your Advantag – Team