Platts proposes to launch German greenhouse gas quota (THG) assessments

Platts, part of S&P Global Commodity Insights, proposes to launch daily assessments for German greenhouse gas reduction quotas (Treibhausgasminderungsquote or THGs) on Nov. 1, 2024.

This builds on the launch of the Netherlands renewable energy units (HBE) assessments in Jan. 2024, reflecting the growing importance of the relevant tickets markets in determining biofuels prices in Europe.

Following a consultation period (subscriber note found here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/062323-platts-extends-consultation-into-european-renewable-transport-certificate-markets), Platts proposes to assess five different ticket types for the German THGs (also referred to as the German GHG quota):

• THG-Conventional
• THG-Advanced (double counting)
• THG-Advanced (single counting)
• THG-Annex IXB
• THG-Other

As defined by the German Thirty-Eighth Ordinance on the Implementation of the Federal Emission Control Act:

• THG-Conventional reflects conventional liquid and gaseous biofuels, including from production of food and feed crops
• THG-Advanced (double counting) reflects liquid and gaseous biofuels that may be categorized as advanced and holding double counting properties
• THG-Advanced (single counting) reflects liquid and gaseous biofuels that may be categorized as advanced and do not hold double counting properties
• THG-Annex IX B reflects biofuels produced from feedstocks as defined in Part 6, Annex IV
• THG-Other reflects uncapped renewable energy that does not meet the criteria of the above categories

The assessments would be published daily at 1630 London time market close in Euros per metric ton of CO2 equivalent (mtCO2e), with the exception of the THG-Advanced (single counting) type which would be published in Euros per gigajoule.

Platts would assess a current year vintage from the first to the last working day of the calendar year. Platts would also assess a previous year vintage from the first working day of January until obligation deadline on the last working day to April 15. For example, the 2024 obligation year would be assessed as current obligation starting on the first working day of January 2024 until the last working day of December 2024. On the first working day of January 2025, it would roll into the previous obligation period, until expiry on the first working day after April 15, 2025. The 2025 vintage would then be assessed as the current year from the first working day of January.

The assessments would reflect first quarter transfer and payment terms in line with market practice. Deals reflecting other terms may be considered and normalized to the specification.

The assessment would reflect a basis volume of 5,000 mt. Volumes outside of these parameters such as between 3,000 - 10,000 mt may be considered and normalized to the specification level.

Please submit any feedback, comments, or questions to mrts_biofuelsandfeedstocks@spglobal.comand pricegroup@spglobal.com by Oct. 3, 2024.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.