The German Emissions Trading Authority (DEHSt) published this week its report on the country’s auction results for the final quarter of 2023 as well as the entire year. The document also “contains a comprehensive overview of secondary market developments,” as stated by DEHSt.

In 2023, the total market volume traded on both the primary and secondary markets reached 9,26 billion allowances, which is 1,2% higher than the previous year’s level of 9,15 billion EUAs. The busiest month in terms of trading was March exceeding the one billion mark, followed by November and December.

It is interesting to mention that the slowest month last year was April. Just 535 million EUAs were sold, the lowest level since February 2018, suggesting that last-minute compliance buying was limited last year, with most operators hedging their carbon exposure in advance.

The report also revealed that on the primary market, installation and aircraft operators purchased just 46% of the volumes auctioned in December, compared to 62% recorded in the same period in 2022.

Furthermore, this is the lowest share since April 2020 and it is well below 60% which is the moving average of the past 12 months. Overall, in 2022, operators purchased around 72% of auctioned volumes, suggesting significant declining interest from compliance buyers in 2023 relative to the previous year.

 

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