Environmentals Newsletter
    September 2019

    EEX contributes to the revision of the EU ETS Auctioning Regulation

    The European Commission has revised the EU ETS Auctioning Regulation. The Commission published and consulted on draft amendments to the regulation until August 6. As Europe’s largest EU ETS auctioning platform, EEX gave detailed input to this consultation in close cooperation with its market participants and the relevant associations. EEX expressly welcomes many of the simplifications and clarifications proposed for the Auctioning Regulation. These include simpler procedures for re-appointment of auctioning platforms and determination of auction calendars. At the same time, EEX suggests a number of additional changes to the regulation. These concern in particular the auction calendar cycle, requirements for access to the auctions, transaction reporting and the structure and level of fees. >

    EEX complements offering for EUA Options

    EEX successfully launched new monthly and quarterly EUA option expiries in June, complementing our December options contract. This suite of option contracts provides a wide range of hedging and trading opportunities in the carbon market. Monthly options were previously not available on the market, but were included at the request of customers. As with the December EUA options, each new monthly and quarterly option will be listed on the underlying of the December futures contract of the same calendar year. Also, in line with market demand, EEX made the change from manual to automatic exercise for EUA options beginning in June. Options which are at least 1 tick in the money will be exercised.

    Keep in mind: We don't charge any fees for options exercise

    New REC Futures boost trading volume on Nodal

    IncubEx and Nodal Exchange broke new ground with the launch of additional Renewable Energy Certificate (REC) futures for North America, all of which were listed for the first time ever on an exchange. Nodal also posted a record volume day and open interest record in July. Nearly a dozen new REC futures were launched on May 31, 2019 including three new futures contracts, were we already recorded first trading activities:

    • Connecticut Class II
    • New Hampshire Class I
    • District of Columbia Solar RECs.

    These new products boosted trading volumes on Nodal, resulting in a record trading day of 3,900 futures on July 30. Open interest for the environmental contracts topped 30,000 contracts on July 19. Finally, Nodal posted a record delivery of 2,300 contracts in July as well.

    Get more details on the new REC products

    EEX calls for extending emissions trading to additional sectors

    This summer, an intense political discussion has been taking place in Germany and all over Europe about carbon pricing. Europe and individual Member States have set greenhouse gas reduction targets. While these are being fulfilled in sectors covered by the EU ETS, the picture on non-ETS sectors is more mixed. Extending carbon pricing to non-ETS sectors could help to ensure reduction targets are also fulfilled in these sectors. Examples are the transport and heating sectors. EEX calls for extending emissions trading to additional sectors. There is range of options to implement this. The preferred solution would be including sectors in the EU ETS at EU level, just like the sectors currently included. A second option which could potentially be implemented quicker would be an opt-in of sectors at national level. In this case, they would also become part of the EU ETS, but not all Member States would have to include them right away. A third option would be the setting up of a new emissions trading scheme for additional sectors (e.g. transport and/or heating). This could be implemented at national level at first, with other member states joining later on. In June, EEX dedicated its Berlin Parliamentary Evening to this topic and organized an expert workshop for political stakeholders. On October 23, the EEX Brussels reception and an additional workshop in Brussels will follow.

    For more information, please contact political.communications@eex.com

    Thanks for attending our London Traders’ Party

    Thanks to everyone who attended our annual Working Committee & Traders’ party in London. The Emissions Working Committee was a full success and we discussed future developments and new product ideas with key players from the Emissions Market. Later in the evening we were delighted that so many of our customers and colleagues were able to join us and to celebrate with us our global success story! And the event also brought a very special honor for us: EEX was awarded as “Best Energy & Commodity Trading House Global” by the CFI.co (Capital Finance International).

    The Party itself was held at the German Gymnasium in Kings Crosswhich has fast become one of London’s trendiest districts. If you’d like to relive the evening,click on the link below to see a selection of picture. Thanks again and already looking forward to next years’ events.