News – Page 11

6. January 20255. January 2025

Emissions Trading / Carbon Market News (06/01/2025)

Dear Sir or Madam,

The old year seems to have flown by and here we are in 2025.

But what’s new in the field of carbon emissions trading? The price per tonne of CO2 in the national German emissions trading scheme has risen from 45 to 55 euros net, an increase of 22.22% after a 50% increase in the previous year.

In addition, due to the new elections in Germany on 23 February 2025, the start of auctions in national emissions trading has been postponed from mid-January to the second quarter of 2025; it will probably not be possible to participate in an auction here before May. We will keep you informed.

In the EU Emissions Trading System (EU ETS), however, auctions will resume tomorrow and a total of 10,170,500 EUAs from the contingents of the EU, Poland and Germany will be auctioned on all remaining trading days this week.

But there is also a lot going on in emissions trading outside the EU. Dubai is introducing a digital platform for aviation emission certificates (CORSIA) and since the United Arab Emirates also wants to be climate neutral by 2050, a reporting requirement will come into force in May for companies that emit more than 500,000 tonnes of CO2. This is intended to be a preliminary stage for an emissions trading system that follows the EU’s cap-and-trade mechanism.

In the aforementioned election campaign in Germany, some parties want to blame the miserable economic situation in Germany on climate protection. Professor Ottmar Edenhofer, climate economist and director of the Potsdam Institute for Climate Impact Research (PIK), has clearly shown that this is not the case.

In an interview with the Neue Osnabrucker Zeitung, he explained that a quarter of all global emissions are already priced and that 30% of the world’s regions have managed to decouple their economic growth from emissions growth.

In the new year, prices for greenhouse gas emissions in the EU ETS rose significantly again. Based on the weekly closing prices, the benchmark future for December 2025 rose by a further 6% over the four trading days, with EUAs managing to return above the 75-euro mark.

The reasons for this included a rise in the gas price due to the alleged intentional destruction of the Estlink2 power cable and the restart of auctions this week on the EEX.

If you need the year-end-quotes 2024 for your bookkeeping, you can find it on our website.

(Average Quotes Exchange / OTC)
Instrument	27/12/24	03/01/25	Change
EUA (December-2025-Future)	71.56 EUR	75.94 EUR	+4.38 EUR
VER (Natural Carbon Offsets)	0.44 USD	0.40 USD	-0.04 USD
VER (CORSIA eligible Carbon Offsets)	0.40 USD	0.44 USD	+0.04 USD
nEZ (German National Carbon Units)	45.00 EUR	55.00 EUR	+10.00 EUR
ICE Brent Crude Oil (Benchmark Future)	73.80 USD	76.88 USD	+3.08 USD
EURO (Currency.. Forex)	1.0421 USD	1.0307 USD	-0.0114 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

1. January 20251. January 2025

Year-end closing prices

Dear Sir or Madam,

Here you will find the year-end closing prices of the financial instruments that we send you in our weekly market reports.

(Average Quotes Exchange / OTC)
Instrument	31/12/23	31/12/24	Change	Percent
EUA (December-2025-Future)	82.57 EUR	73.00 EUR	-9.57 EUR	-11.6%
EUA (Spot Market)	80.02 EUR	71.48 EUR	-8.54 EUR	-10.7%
VER (Natural Carbon Offsets)	0.56 USD	0.44 USD	-0.12 USD	-21.4%
VER (CORSIA eligible Carbon Credits)	0.45 USD	0.12 USD	-0.33 USD	-73.3%
nEZ (national Emission Certificates (D))	30.00 EUR	45.00 EUR	+15.00 EUR	+50.0%
ICE Brent Crude Oil (Benchmark Future)	76.83 USD	75.05 USD	-1.78 USD	-2.3%
EURO (Currency, Forex)	1.1031 USD	1.0340 USD	-0.0691 USD	-6.3%

Yours sincerely,

Advantag GmbH

30. December 202429. December 2024

Emissions Trading / Carbon Market News (30/12/2024)

Dear Sir or Madam,

Supplying industry and consumers with affordable energy is already an important topic in the German election campaign, with the parties sometimes far apart in their views on the type of energy generation. After the coal phase-out in the UK a few weeks ago, the option of nuclear energy is also appearing in some election programmes.

Globally, nuclear energy is growing again after many years of decline. According to forecasts by the International Atomic Energy Agency (IAEA), the number of nuclear reactors worldwide is expected to more than double from 413 at the end of last year to 950 by 2050, and capacity is expected to increase from 372 gigawatts to 950 gigawatts.

There are currently 59 new nuclear reactors under construction, 24 of which will generate energy in China alone. And many other countries, including the US, the UK and Japan, want to triple their nuclear energy production by 2050. German neighbouring countries the Netherlands and Belgium have postponed their phase-out, and Poland is considering entering the nuclear energy market.

In the future, so-called new ‘small modular reactors’, or SMRs for short, are also to be used. These are small nuclear power plants that, among other things, can be transported and interconnected as needed.

Technology companies such as Microsoft, Oracle, Google and Amazon are backing nuclear energy in order to obtain both low-cost electricity and to be able to meet their climate protection targets.

It is therefore difficult to imagine that Germany, as an industrialised country, can avoid this topic, because the industrial electricity price in particular is a frequent cause for the relocation of production.

Whatever the future government in Berlin looks like, there will certainly be debates about re-entering the nuclear energy market, weighing up the opportunities for faster greenhouse gas reduction and the risks of the final storage problem of the fuel rods.

However, it is rather unlikely that the increased use of nuclear energy will have a major impact on prices in carbon emissions trading, since the market stability reserve would take effect in the event of a significant oversupply of emission allowances.

In the Christmas week, the prices of emission rights continued to show a bullish trend and visibly exceeded the 70-euro mark with a weekly gain of almost 5%.

The closing price on Friday was close to a resistance line, and it remains to be seen whether this will hold or whether the price will continue to perform bullishly around the turn of the year.

We wish you a happy new year 2025!

(Average Quotes Exchange / OTC)
Instrument	20/12/24	27/12/24	Change
EUA (December-2025-Future)	68.20 EUR	71.56 EUR	+3.36 EUR
VER (Natural Carbon Offsets)	0.56 USD	0.44 USD	-0.12 USD
VER (CORSIA eligible Carbon Offsets)	0.45 USD	0.40 USD	-0.05 USD
nEZ (German National Carbon Units)	45.00 EUR	45.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	73.11 USD	73.80 USD	+0.69 USD
EURO (Currency.. Forex)	1.0429 USD	1.0421 USD	-0.0008 USD

Please call our international carbon desk if any further questions exist: +49.2831.1348220.

With kind regards,

Your Advantag – Team

23. December 202422. December 2024

Emissions Trading / Carbon Market News (23/12/2024)

Ladies and gentlemen,

Last Tuesday, a group of Eastern European EU member states called for the entry into force of the EU ETS 2 for the buildings and transport sector to be postponed, as they fear social and economic consequences.

The politicians led by Czech Environment Minister Petr Hladik (EPP) expect petrol and diesel prices to rise by several dozen cents when it comes into force at the beginning of 2027.

The Alliance argues that a postponement by one year to 2028 would lead to greater acceptance and could also reduce market volatility, which would mean a reduction in the social impact. Some countries are even calling for a three-year postponement.

The market stability reserve, which would be used if prices were too volatile, should also be worth discussing.

In addition to the Czech Republic, Italy, Slovakia and Latvia are said to be open to such plans and France has also declared partial flexibility in this regard.

However, the EU Commission clearly spoke out against changes.

Last week, the previous benchmark contract for EUA December 2024 futures expired and the December 2025 contract has now taken over its function.

After prices trended significantly southwards on the first two trading days of last week, this trend came to a halt on Wednesday and, under the support of bullish gas prices, EUAs rose significantly on the last two trading days, closing the week with a price gain of 2.6%.

Interestingly, the support line at just under EUR 65 held and the 200-day line is now the next resistance level, currently at EUR 69.01.

As there will be no auctions in the EU ETS on the Leipzig EEX until January 16, 2025, pricing will now be determined entirely by fundamental news, the market environment and chart technology.

In addition, it has often been the case in recent years that institutional investors are still buying, which would give prices a bullish impetus.

(Average Quotes Exchange / OTC)
Instrument	13/12/24	20/12/24	Change
EUA (December-2025-Future)	66.47 EUR	68.20 EUR	+1.73 EUR
VER (Natural Carbon Offsets)	0.40 USD	0.56 USD	+0.16 USD
VER (CORSIA eligible Carbon Offsets)	0.44 USD	0.45 USD	+0.01 USD
nEZ (German National Carbon Units)	45.00 EUR	45.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	74.56 USD	73.11 USD	+1.45 USD
EURO (Currency.. Forex)	1.0497 USD	1.0429 USD	-0.0068 USD

Please call our international carbon desk if any further questions exist: +49.2831.1348220.

With kind regards,

Your Advantag – Team

19. December 202419. December 2024

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