EEX sees further decline in carbon trading revenue

Published 15:14 on August 27, 2015  /  Last updated at 15:37 on August 27, 2015  /  EMEA, EU ETS  /  No Comments

Emissions trading revenue for EEX dropped by €100,000 in the first half of 2015 compared to a year ago, as the German energy bourse continued to see activity on its secondary market decline.

Emissions trading revenue for EEX dropped by €100,000 in the first half of 2015 compared to a year ago, as the German energy bourse continued to see activity on its secondary market decline.

Leipzig-based EEX reported turnover of €700,000 from its emissions trading business in H1, which included revenue earned from hosting government EU Allowance auctions – the so-called primary market – as well as subsequent secondary market trading. That was down from €800,000 a year ago.

“While the revenue declined on the secondary market, EEX was able to slightly increase sales on the primary market,” EEX said in a press release on Thursday, without giving trading volume numbers.

EEX currently handles EUA sales on behalf of 27 of the EU’s 28 member states.

The number of permits sold in government auctions increased this year due to fewer allowances being withheld from the market under the EU’s Backloading initiative than in 2014.

EEX in April reported emissions trading revenues of €1.3 million for the 2014 financial year, down from €1.6 million in 2013.

EEX’s chief operating officer last month said the exchange was introducing new programmes to attract activity to its emissions trading platform, in order to stem the drop in liquidity.

Market leader ICE Futures Europe is also stepping up efforts to boost its emissions trade, announcing new initiatives this week including the slashing of trading fees for its spot contracts and for new participants.

By Mike Szabo – mike@carbon-pulse.com

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