Tag: Voluntary Carbon Credits

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)
Instrument	06/12/24	13/12/24	Change
EUA (December-2024-Future)	68.31 EUR	64.43 EUR	-3.88 EUR
VER (Natural Carbon Offsets)	0.36 USD	0.40 USD	+0.04 USD
VER (CORSIA eligible Carbon Offsets)	0.46 USD	0.44 USD	-0.02 USD
nEZ (German National Carbon Units)	45.00 EUR	45.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	71.35 USD	74.56 USD	+3.21 USD
EURO (Currency.. Forex)	1.0568 USD	1.0497 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

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)
Instrument	29/11/24	06/12/24	Change
EUA (December-2024-Future)	68.40 EUR	68.31 EUR	-0.09 EUR
VER (Natural Carbon Offsets)	0.40 USD	0.36 USD	-0.04 USD
VER (CORSIA eligible Carbon Offsets)	0.44 USD	0.46 USD	+0.02 USD
nEZ (German National Carbon Units)	45.00 EUR	45.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	72.81 USD	71.35 USD	-1.46 USD
EURO (Currency.. Forex)	1.0575 USD	1.0568 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

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)
Instrument	22/11/24	29/11/24	Change
EUA (December-2024-Future)	69.27 EUR	68.40 EUR	-0.87 EUR
VER (Natural Carbon Offsets)	0.32 USD	0.40 USD	+0.08 USD
VER (CORSIA eligible Carbon Offsets)	0.25 USD	0.44 USD	+0.19 USD
nEZ (German National Carbon Units)	45.00 EUR	45.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	74.59 USD	72.81 USD	-1.78 USD
EURO (Currency.. Forex)	1.0414 USD	1.0575 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

Dear Sir or Madam,

The prices in the European Emissions Trading System EU ETS show the current price for the emission of one tonne of CO2 or its equivalent (CO2e) in the sectors currently priced by the EU, but what happens to the revenues generated by the European primary market auctions on the European Energy Exchange EEX?

Among other things, the European Union is supporting 85 innovative ‘net-zero projects’ with a total of 4.8 billion euros. These projects receive funding from the so-called innovation fund and are intended to develop climate-friendly technologies and make them usable, which should contribute to the decarbonisation of Europe.

These projects are located in 18 countries and are to be implemented by 2030, saving 476 million tonnes of CO2e in the first 10 years. They are in areas such as renewable energies, energy storage and mobility.

Last week, prices in the EU ETS recovered significantly compared to the previous week. After Monday was still bearish, the price rose to the 200-day line, particularly on Wednesday, and on Thursday this resistance and the 38-day line were also easily overcome.

After the 60-euro mark proved stable at the beginning of October and prices moved well away from it, some market participants closed their short positions and this short covering supported the 7.5% price increase on a weekly closing price basis.

However, since nothing has changed fundamentally, it is relatively likely that the market will calm down again in the coming week and tend more towards the 200-day line, which is currently at 64.91. It remains to be seen how strong it will prove to be as possible support.

After the 14,582,500 EUAs auctioned on the EEX last week, only 11,749,000 EUAs will be auctioned over four trading days in the new trading week, as the Polish auction is not scheduled to take place on Wednesday.

(Average Quotes Exchange / OTC)
Instrument	18/10/24	25/10/24	Change
EUA (December-2024-Future)	62.28 EUR	66.97 EUR	+4.69  EUR
VER (Natural Carbon Offsets)	0.34 USD	0.51 USD	+0.17 USD
VER (CORSIA eligible Carbon Offsets)	0.42 USD	0.43 USD	+0.01 USD
nEZ (German National Carbon Units)	45.00 EUR	45.00 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	73.46 USD	76.05 USD	+2.59 USD
EURO (Currency.. Forex)	1.0866 USD	1.0795 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