Tag: nEZ

Dear Madam or Sir,

Last week, the European Commission initiated infringement proceedings against Germany and 25 other countries for failing to implement a directive on EU emissions trading (EU ETS).

This directive concerned, among other things, the creation of a social climate fund, the new EU emissions trading system for transport and buildings, which is due to start in 2027, and the extension of emissions trading to shipping.

The European Commission has also drawn up a draft climate target for 2040, which, according to the German Press Agency, envisages a 90% reduction in greenhouse gas emissions compared to 1990 and is to be presented this week.

The most important component here is the “Fit for 55” legislative package, which includes extensive measures for industry, the energy sector, the transport sector and agriculture. 

According to the draft, a reduction of 90 – 95% by 2040 is required in line with the recommendations of the Scientific Advisory Board in order to prevent key tipping points in the climate system and “potentially catastrophic impacts on human society and ecosystems” from being exceeded.

As the EU’s central market-based instrument is CO2 emissions trading, the draft is also likely to have an impact on the future design of emissions trading, such as the inclusion of additional sectors and the increase in the annual reduction factor of the emission allowances to be auctioned.

Last week, prices in EU emissions trading fluctuated within a relatively moderate range between EUR 61.23 and EUR 65.16 in the EUA December 2024 benchmark contract.

As the Polish auction will not take place on Wednesday, a total of 11,094,500 EUAs will be auctioned on the other trading days.

(Average Quotes Exchange / OTC)
Instrument	26/01/24	02/02/24	Change
EUA (December-2024-Future)	63.58 EUR	63.40 EUR	-0.18 EUR
VER (Natural Carbon Offsets)	1.33 USD	1.59 USD	+0.26 USD
VER (CORSIA eligible Carbon Offsets)	0.77 USD	0.88 USD	+0.11 USD
nEZ (German National Carbon Units)	45.00 EUR	45.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	83.15 USD	77.40 USD	-5.75 USD
EURO (Currency, Forex)	1.0848 USD	1.0788 USD	-0.0060 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

Dear Madam or Sir,

In particular, the protagonists and supporters of a German party that idolises diesel and because of which millions of people are currently taking to the streets in Germany often argue that it would help nothing for climate protection if only Germany and Europe were to reduce greenhouse gases, while the rest of the world would do nothing of the sort.

But this argument is based on faith and not on facts and knowledge and at best serves to dumb people down. The fact is that most of the world’s wind power is generated in China, followed by the USA, Germany and Brazil. Without this, the increase in greenhouse gases in the atmosphere would have been even more significant.

Last Thursday, the Finnish “Centre of Research on Energy and Clean Air”, or “CREA” for short, published a report showing that green investments accounted for 40% of the growth in China’s gigantic economic output last year.

This includes electromobility, wind and solar energy systems, rail transport, hydropower, nuclear energy and energy storage. A total of USD 890 billion was invested in these areas in China, which enabled economic growth of 5.2%; without these investments, growth would have been significantly lower at 3.0%.

What’s more, pricing of greenhouse gas emissions has already been introduced in many countries around the world, following the European model. The emission of one tonne of CO2 currently costs the equivalent of US$ 10.27 in China, US$ 6.72 in South Korea, US$ 70.90 in New Zealand and US$ 28.66 in California, the world’s fourth largest economy.

Prices in EU emissions trading hardly moved at all last week on a weekly closing price basis, but they broke free from the steep sideways-downward trend channel over the course of the week and moved in a trading range between EUR 60.86 and EUR 66.43 in the benchmark December 2024 contract.

In this trading week, a total of 13,404,500 EUAs will be offered for auction on all five trading days on the European Energy Exchange.

(Average Quotes Exchange / OTC)
Instrument	19/01/24	26/01/24	Change
EUA (December-2024-Future)	63.65 EUR	63.58 EUR	-0.07 EUR
VER (Natural Carbon Offsets)	1.27 USD	1.33 USD	+0.06 USD
VER (CORSIA eligible Carbon Offsets)	0.66 USD	0.77 USD	+0.11 USD
nEZ (German National Carbon Units)	45.00 EUR	45.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	77.88 USD	83.15 USD	+5.27 USD
EURO (Currency, Forex)	1.0898 USD	1.0848 USD	-0.0050 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