Emissions Trading / Carbon Market News (23/09/2024)

Dear Sir or Madam,

According to a study by the German Bundesbank, companies in Germany have not yet relocated their production sites due to the EU Emissions Trading System (EU ETS), as the Bundesbank stated in its September monthly report.

The Bundesbank points out that companies with high greenhouse gas emissions already had an above-average presence outside of Europe before the 2013 / 2021 EU ETS reforms. In addition, companies in the EU have visibly reduced their greenhouse gas emissions more since 2014.

Furthermore, the EU has responded to the different carbon pricing outside the EU with the CBAM (Carbon Borderline Adjustment Mechanism), which was launched last year.

Prices in the EU ETS also fell by a good 2.5% in the past trading week, reaching a new five-month low. The persistently weakening economy in Germany is particularly noticeable here.

At a global level, demand for oil and gas appears to have increased again, although EUA prices have currently decoupled from this.

In this trading week, a total of 14,582,500 emission allowances will be auctioned on the European Energy Exchange on all five trading days, which corresponds to an increase of 15.2% compared to the previous week.

    (Average Quotes Exchange / OTC)       
Instrument13/09/2420/09/24Change
EUA (December-2024-Future)64.99 EUR63.39 EUR-1.60 EUR
VER (Natural Carbon Offsets)0.27 USD0.30 USD+0.03 USD
VER (CORSIA eligible Carbon Offsets)0.23 USD0.24 USD+0.01 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)72.49 USD74.94 USD+2.45 USD
EURO (Currency.. Forex)1.1071 USD1.1163 USD+0.0092 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

Emissions Trading / Carbon Market News (16/09/2024)

Dear Sir or Madam,

According to a study by the think tank ‘Agora Agrar’, greenhouse gas emissions in the European Union could be halved by 2045 in the agricultural sector and especially in peatlands used for agriculture.

In line with this, EU Commission President Ursula von der Leyen last Friday called for new financial instruments, similar to the EU Emissions Trading System (EU ETS), which “reward those who serve this planet”.

In particular, companies that benefit from an intact natural environment should financially reward local communities for preserving it. Von der Leyen gave examples such as pure spring water or orchards that rely on bees.

At the end of her speech, the Commission President explained that intensive work was already underway with EU member states to develop the first pilot projects to support this process.

Prices in the EU ETS slumped further for the fourth week in a row last week, closing down 2.3% just below the EUR 65 mark and hitting a seven-week low at the same time. The 200-day line, which currently stands at 66.24, was only temporarily broken upwards at the beginning of the week, but proved to be a stable resistance. It remains to be seen whether the EUA will succeed in sustainably overcoming this barrier this week or whether the price will trend towards the EUR 60 line.

Auctions totalling 12,658,000 emission allowances are scheduled on the EEX on all five trading days this week, including 906,000 EUAs for aviation on Wednesday, which can also be used for stationary installations.

In view of the current situation, we would like to point out that it is important that companies obliged to surrender their national emission allowances for the year 2024 (nEZ24) in Germany’s national emissions trading system in accordance with the BEHG only surrender them in the coming year so that they are available on the registry account on 31 December 2024 and thus the purchase option of 10% of this volume can be exercised in the coming year at the same price of EUR 45.00.

If you have any questions, please do not hesitate to contact us.

    (Average Quotes Exchange / OTC)       
Instrument06/09/2413/09/24Change
EUA (December-2024-Future)66.50 EUR64.99 EUR-1.51 EUR
VER (Natural Carbon Offsets)0.31 USD0.27 USD-0.04 USD
VER (CORSIA eligible Carbon Offsets)0.20 USD0.23 USD+0.03 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)72.27 USD72.49 USD+0.22 USD
EURO (Currency.. Forex)1.1085 USD1.1071 USD-0.0014 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,

Advantag GmbH

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

Dear Sir or Madam,

The German Emissions Trading Authority (DEHSt) of the German Environment Agency was founded 20 years ago and, under the direction of Dr Juergen Landgrebe, has been responsible for the EU Emissions Trading System (EU ETS) and, for the last four years, for Germany’s national emissions trading scheme (nEHS) with its current staff of 279.

DEHSt staff now support 1,725 German industrial and energy installations subject to emissions trading in the EU ETS, 71 aircraft operators and, since 2024, 834 shipping companies in the areas of application, monitoring of reporting and delivery obligations, and registry account management. In addition, there are around 2,000 companies in the nEHS area.

They are also responsible for the auctions on the European Energy Exchange EEX for national emissions trading and the EU ETS, as well as the new Carbon Border Adjustment Mechanism CBAM.

EU emissions trading prices fell significantly by 5.4% on a weekly closing price basis in the past week of trading in a sharply bearish energy market environment, marking a six-week low.

After the EUA failed to break through the 38-day line on a daily closing price basis last Monday, they plummeted on Tuesday and have been moving towards the 200-day line ever since, breaking through it on Thursday. On Friday, the EUA closed four cents above the 200-day line, which is currently trading at 66.46.

If the market environment continues to calm down, EUAs in the current trading week should move between the 200-day line and the 38-day line, which is currently at 70.63. Should the bearish trend continue, a further slump to 60 euros would be within the realm of possibility.

In this 37th calendar week, a total of 14,582,500 EUAs will be auctioned on all five trading days on the EEX.

    (Average Quotes Exchange / OTC)       
Instrument30/08/2406/09/24Change
EUA (December-2024-Future)70.30 EUR66.50 EUR-3.80 EUR
VER (Natural Carbon Offsets)0.38 USD0.31 USD-0.07 USD
VER (CORSIA eligible Carbon Offsets)0.23 USD0.20 USD-0.03 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)77.77 USD72.27 USD-5.50 USD
EURO (Currency.. Forex)1.1048 USD1.1085 USD+0.0037 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,

Advantag GmbH

Emissions Trading / Carbon Market News (02/09/2024)

Dear Sir or Madam,

The German Federal Ministry for Economic Affairs and Energy has announced funding of 3.3 billion euros until 2030 for the decarbonisation of medium-sized companies. In particular, investments in innovative technologies as well as research and development are to be promoted.

The first call for funding is to be issued this month, with small and medium-sized companies in particular then having three months to submit their projects.

Funding opportunities are to start from a project size of TEUR 500.0 for small and medium-sized companies and from TEUR 1,000.0 for large companies. If the project volume exceeds EUR 15,000,000, the respective federal state is to provide 30% co-financing.

September has begun and 30 September 2024 is the last day for submitting emission allowances in the EU Emissions Trading System EU ETS and in the German national emissions trading nEHS.

The last date on which German national certificates valid for 2023 can be purchased at the fixed price of EUR 30.00 per national emission allowance (nEZ23) on the EEX is Thursday, 19 September 2024. Even if you need us to procure certificates for you and your 10% buy-quota has been exhausted, we recommend that you also do so around this time due to the transfer deadlines in the registry, in order to avoid risking any penalties.

This week also marks the first time that the slightly increased auction volume for EU emission rights will come into effect on the EEX. Due to the regular absence of the Polish auction on Wednesday, a total of 11,749,000 EUAs will be auctioned this week, which is 12.6% less than in the previous week.

Next week, including the Polish Wednesday auction of 2,833,500 EUAs, the total will be 14,582,500 emission rights. That is 24.1% more than this week and 8.4% more than in the last week of August.

In the past trading week, prices slowly moved downwards in the rough area around the 38-day line and fell by 1.2% on a weekly closing price basis. The 38-day line is currently at 70.64 and the closing price on Friday was back above the 70-euro mark, after falling below it during the course of the day with a low of 69.96.

If the 70-euro mark does not prove to be a stable support, the price could also trend towards the 200-day moving average, which is currently trading at 66.74. If the 70-euro mark holds and the market can break through the 38-day line again, then prices in the direction of the 75-euro mark are also possible.

Depending on how many companies still need to cover themselves shortly before the deadline, the trend in the coming weeks should go in one direction or another.

    (Average Quotes Exchange / OTC)       
Instrument23/08/2430/08/24Change
EUA (December-2024-Future)71.13 EUR70.30 EUR-0.83 EUR
VER (Natural Carbon Offsets)0.45 USD0.38 USD-0.07 USD
VER (CORSIA eligible Carbon Offsets)0.21 USD0.23 USD+0.02 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)79.16 USD77.77 USD-1.39 USD
EURO (Currency.. Forex)1.1119 USD1.1048 USD-0.0071 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,

Advantag GmbH

Emissions Trading / Carbon Market News (26/08/2024)

Dear Sir or Madam,

led by Gregory Trencher of Kyoto University, scientists from Japan, Switzerland and Germany have published a study on the voluntary carbon market in Nature magazine, concluding that large-scale buyers in particular give priority to the acquisition and decommissioning of certificates that are of lower quality in terms of price and quality.

To this end, the researchers analysed data sets from 2020 to 2023 and found that the fewest projects used for compensation met high-quality standards such as the Gold Standard, Voluntary Carbon Standard or Clean Development Mechanism.

The 20 largest offset users were in particular airlines and oil companies, car manufacturers and logistics companies. Their decision-makers deliberately chose questionable low-cost projects and obviously did not care how this was perceived by customers and business partners.

We and many other companies and experts rightly see this as ‘greenwashing’ and hope that this study will become known to a wider public.

In the mandatory European CO2 market, prices have been slightly bearish in the weakening market environment in the past week, falling by just under 2% on a weekly closing price basis. The 38-day line, which is currently at 70.55, has proven to be a stable support level, which was tested on Friday.

In the last week of August, a total of 13,447,500 EUAs will be auctioned on the Leipzig EEX, which is almost 2.4 million emission rights more than in the previous week.

    (Average Quotes Exchange / OTC)       
Instrument16/08/2423/08/24Change
EUA (December-2024-Future)72.52 EUR71.13 EUR-1.39 EUR
VER (Natural Carbon Offsets)0.44 USD0.45 USD+0.01 USD
VER (CORSIA eligible Carbon Offsets)0.24 USD0.21 USD-0.03 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)80.01 USD79.16 USD-0.85 USD
EURO (Currency.. Forex)1.1026 USD1.1119 USD+0.0093 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,

Advantag Services GmbH