Advantag thanks you for the good cooperation in 2024

Dear business partners,

2024 is coming to an end and with it a year that will surely be remembered as a very challenging one for all companies and their employees.

This year, Germany has continued to perform below its potential, and the global geopolitical environment, with wars in Ukraine and the Middle East, remains a cause for concern.

Nevertheless, we can look ahead to 2025 with optimism, as new elections are scheduled for February, offering the chance to end the political stalemate in Germany and enable forward-looking reforms.

Furthermore, there are increasing signs that negotiations could take place in the Ukraine war and that a little more peace and normality will also return to the Middle East.

Interest rates in the US and Europe have been lowered and politicians from all parties have recognized the urgent need for action to relieve and support the economy and thus all companies.

Now is the time to thank you from the bottom of our hearts for the good and trusting cooperation this year!

The entire Advantag GmbH team wishes you, your friends, family members, employees and colleagues a Merry Christmas and a good start to a hopefully healthy and successful New Year in 2025!

As in previous years, we are foregoing unnecessary material gifts and instead are once again jointly supporting a global climate protection project. Furthermore, in 2024 we are continuing to support the great work of action medeor e. V. from our Lower Rhine neighbourhood in Toenisvorst in their tireless help for people in need.

This year, we have decided on an Indian climate protection project, which we support financially by retiring CO2 certificates. The project avoids the emission of 86,000 tons of CO2 per year in the state of Andhra Pradesh by using waste from vegetable oil production for energy generation instead of disposing of it.

We look forward to continuing to work for you in 2025.

Your Team from Advantag GmbH

Emissions Trading / Carbon Market News (16/12/2024)

Dear Sir or Madam,

In 2027, Germany’s national emissions trading under the Fuel Emissions Trading Act is to be transferred to the new second European Emissions Trading System EU ETS 2.

Now, the European Commission has set a quantity of 1,036,288,784 emission allowances for the buildings and transport sectors in relation to the 2027 cap. Here, too, an allowance represents the right to emit one tonne of CO2 with fossil fuels. No figures have yet been set for 2028.

According to the Commission, these 1.04 billion tons correspond to the average CO2 emissions in the priced sectors in the EU in 2016-2018. For 2028, the average emissions from 2024-2026 will be used as the baseline.

Buildings equipped with photovoltaic systems and/or heat pumps will therefore have significantly less to contribute under the EU ETS 2 carbon pricing system, and drivers of electric vehicles will also have a significant financial advantage.

Since the EU ETS 2 is expected to be particularly volatile in the first few months, it is advisable to work with a partner that has many years of experience in the EU ETS 1 and can recommend an appropriate optimal procurement strategy for the emission rights. Please feel free to contact us today if you will be participating in the EU ETS 2.

In the past week, EU ETS 1 emission allowances fell significantly in the run-up to the expiry of the December 2024 futures contract, losing almost 6% on a weekly closing price basis.

Today, the last auction of EU emission allowances (EUA) at the Leipzig EEX this year will also take place, with 3,428,000 certificates from EU stocks. 

Should the market remain bearish, we see support in the area of around 62.50, after which the 60-euro mark could provide market-psychological support. On the upside, the 200-day moving average is now a resistance level at 66.36 and just under 69 another resistance line.

    (Average Quotes Exchange / OTC)       
Instrument06/12/2413/12/24Change
EUA (December-2024-Future)68.31 EUR64.43 EUR-3.88 EUR
VER (Natural Carbon Offsets)0.36 USD0.40 USD+0.04 USD
VER (CORSIA eligible Carbon Offsets)0.46 USD0.44 USD-0.02 USD
nEZ (German National Carbon Units)45.00 EUR45.00 EUR+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)71.35 USD74.56 USD+3.21 USD
EURO (Currency.. Forex)1.0568 USD1.0497 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,

Your Advantag – Team

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

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

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