Dear Madam or Sir,

The votes in the European Parliament last Wednesday regarding the classification of nuclear power plants and gas-fired power plants have now paved the way for classifying them as climate-friendly in accordance with the EU taxonomy regulation. Only 278 of the required 353 votes against were cast. It is extremely unlikely that this will now be prevented by the member states in the final vote. This classification now allows investors to invest in such technologies again. It remains to be seen to what extent this classification will negatively affect the further expansion of renewable energies in Europe.

The supply of gas is currently an urgent problem, as it is still not clear how security of supply in Germany and the other EU countries is to be guaranteed during the colder months of the year. In addition, the potential for social upheaval should not be underestimated, since low-income households in particular will hardly be able to cope with the already extremely high energy costs.

One of the reasons for the shortage of gas is the supply from Nord Stream I, which has been significantly reduced for weeks, which, according to Russian information, is due to technical problems. Since this morning, due to the installation of a turbine from Canada and further maintenance work, no gas has flowed through the pipeline for the scheduled 10 days. It remains to be seen whether, once the repairs have been completed, gas will again be supplied.

The Euro fell to a 20-year low of USD 1.0072 last Friday in the face of European problems linked to energy supply insecurity. The financial markets are also reacting bearishly, so it is no wonder that concerns about the economy are contributing to the fact that the prices for European emission certificates are also showing losses compared to the previous week, which, however, can be described as moderate in view of the negative environment.

In the coming week, auctions for a total of 8.8 million EUAs will take place at the Leipzig EEX, which is 2.7 million fewer emission allowances than in the following week.

(Average Quotes Exchange / OTC)
Instrument	01/07/22	08/07/22	Change
EUA (Spot-Market)	85.37 EUR	82.55 EUR	-2.82 EUR
EUA (December-2022-Future)	85.58 EUR	82.79 EUR	-2.79 EUR
VCU (Voluntary Carbon Units ø)	8.85 USD	8.83 USD	-0.02 USD
VER (Gold Standard Spotmarkt ø)	4.11 USD	3.96 USD	-0.15 USD
nEZ (German National Carbon Units)	30.00 EUR	30.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	111.55 USD	107.05 USD	-4.50 USD
EURO (Currency, Forex)	1.0424 USD	1.0182 USD	-0.0242 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. The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. 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

Dear Madam or Sir,

Since humans settled down around 12,000 years ago, the number of trees worldwide has declined by 46%. There are currently around 400 trees per person, but this number is falling due to ongoing deforestation and increasing world population.

Since forests and trees are extremely important for the reduction of greenhouse gases, city planners in particular should plan more green in the cities. However, more trees in the cities not only plays an important role because of the reduction in greenhouse gases, but also to reduce the temperatures in German cities. Because in cities like Vienna, London or Berlin, the temperature in the inner cities has risen by an average of 3°C since 1960.

But also climate protection projects, which are financed by carbon credits from voluntary emissions trading and, for example, enable afforestation in Asia, Africa or South America, can make a significant contribution here.

The prices for carbon emission allowances in the obligatory European emissions trading system have been above the 90 euro mark several times in the past week, but towards the end of the trading week profit-taking caused a significant drop in prices.

This week, auctions with a total volume of 11,488,500 EUAs will be held on the Leipzig EEX on all five trading days.

(Average Quotes Exchange / OTC)
Instrument	24/06/22	01/07/22	Change
EUA (Spot-Market)	83.29 EUR	85.37 EUR	+2.08 EUR
EUA (December-2022-Future)	83.43 EUR	85.58 EUR	+2.15 EUR
VCU (Voluntary Carbon Units ø)	8.78 USD	8.85 USD	+0.07 USD
VER (Gold Standard Spotmarkt ø)	3.96 USD	4.11 USD	+0.15 USD
nEZ (German National Carbon Units)	30.00 EUR	30.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	113.05 USD	111.55 USD	-1.50 USD
EURO (Currency, Forex)	1.0506 USD	1.0424 USD	-0.0082 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. The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. 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

Dear Madam or Sir,

Despite the ongoing pandemic situation last year, emissions from Germany’s plants covered by the European emissions trading system EU ETS will be almost back to the pre-Corona level in 2021.

The energy sector in particular has contributed to this, with emissions rising for the first time since 2013. These were 14% or 235 million tonnes of CO2 higher than in the previous year, since more coal was used during the economic recovery despite higher CO2 prices. Ultimately, this has also led to a corresponding increase in electricity prices since then.

The emissions of the energy-intensive industry in Germany only increased moderately by 5% compared to the previous year, but they were almost at the pre-corona level.

After there were significantly fewer flight movements in 2020, the share of German aviation emissions rose last year by a fifth to 4.6 million tons of CO2.

Regarding the targets for reductions in the EU ETS (minus 43% compared to 2005 by 2030), Germany is currently 31%, visibly behind the European average of 38% compared to 2005. And at the European level, Germany was also the leader in increasing the Greenhouse gas emissions, which makes further efforts to ensure compliance with the Paris climate protection agreement by politicians urgently necessary.

After the reform proposal of the environment committee was rejected by a majority of the European Parliament two weeks ago, a new compromise proposal is now to be voted on Wednesday. Now the reduction factor should be more than 63% and the linear annual reduction factor 4.4% in 2024 and 4.6% from 2029 compared to the previously proposed 4.5%. This is currently 2.2%, after having been 1.74% in the third phase of EU emissions trading. In addition, the free allocation of emission rights is to expire in the years 2027-2032.

The market for EU emission allowances reacted with a moderate weekly gain of 51 cents in December futures. The vote on Wednesday will remain exciting.

(Average Quotes Exchange / OTC)
Instrument	10/06/22	17/06/22	Change
EUA (Spot-Market)	81.74 EUR	82.24 EUR	+0.50 EUR
EUA (December-2022-Future)	81.86 EUR	82.37 EUR	+0.51 EUR
VCU (Voluntary Carbon Units ø)	10.42 USD	9.20 USD	-1.22 USD
VER (Gold Standard Spotmarkt ø)	4.62 USD	4.45 USD	-0.17 USD
nEZ (German National Carbon Units)	30.00 EUR	30.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	122.01 USD	114.54 USD	-7.47 USD
EURO (Currency, Forex)	1.0515 USD	1.0495 USD	-0.0020 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. The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. 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

Dear Madam or Sir,

Last Wednesday, the EU Parliament met and voted on the proposals for the reform of EU emissions trading system. These were rejected with 340 no and 265 yes votes.

MEP Dr. Peter Liese, who worked out the compromise proposal and brought it to the vote, sees the main blame for this in particular with the social democratic parliamentary group, which was particularly dissatisfied with the timetable for the introduction of the CO2 border taxation and the expiry of the free allocation of CO2 emission rights.

The Greens, on the other hand, found the proposal too softened by the lobbyists of the fossil industry, as MEP Michael Bloss announced.

Now the talks in the Environment Committee regarding the reform of the EU ETS have to start all over again.

The market then reacted with significant losses, but remained stable above the EUR 80 mark towards the end of the trading week.

In the new week, a total of 8,830,500 EUAs and 600,000 emission allowances for the aviation industry (EUAA) will be auctioned at the Leipzig energy exchange EEX.

(Average Quotes Exchange / OTC)
Instrument	03/06/22	10/06/22	Change
EUA (Spot-Market)	88.73 EUR	81.74 EUR	-6.99 EUR
EUA (December-2022-Future)	88.87 EUR	81.86 EUR	-7.01 EUR
VCU (Voluntary Carbon Units ø)	10.85 USD	10.42 USD	-0.43 USD
VER (Gold Standard Spotmarkt ø)	4.98 USD	4.62 USD	-0.36 USD
nEZ (German National Carbon Units)	30.00 EUR	30.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	121.69 USD	122.01 USD	+0.32 USD
EURO (Currency, Forex)	1.0562 USD	1.0515 USD	-0.0047 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. The VER quotes are average rates (carboncredits.com), which can be used within the framework of CORSIA and voluntary carbon offsetting. 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