Platts to launch German greenhouse gas quota (THG) assessments

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

These new assessments build on the launch of the Netherlands renewable energy units (HBE) assessments Jan. 2024, and reflect the growing importance of the key tickets markets in determining biofuels prices in Europe.

Following a proposal, published Sept. 4: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/090424-platts-proposes-to-launch-german-greenhouse-gas-quota-thg-assessments, Platts will 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 Immission 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 does not hold double counting properties
• THG-Annex IX B reflects biofuels produced from feedstocks as defined in Part 6, Annex IV (or Annex IX, Part B of the Renewable Energy Directive II)
• THG-Other reflects uncapped renewable energy that does not meet the provisions of the above categories

The assessments will be published daily to a 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 will be published in euros per gigajoule.

Platts will assess a current year vintage from the first to the last working day of the corresponding calendar year. Platts will start assessing the next year vintage from the first working day of November. Platts will also assess a previous year vintage from the first working day of January until April 15. If April 15 is a non publishing day then Platts will stop publishing the previous year's THGs on the publishing day before April 15.

For example, on Nov. 1, 2024, Platts will assess the 2024 current year tickets and 2025 next year tickets. Then on the first working day of January 2025, Platts would assess the 2024 tickets as the previous year vintage and 2025 tickets as the current year.

The THGs are regulated by Bundeszollverwaltung (German customs) and hence subject to change without prior notice, Platts may update the Platts THG vintage expiry dates at any time and inform the market of the changes through subscriber notes.

The assessments will 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 of CO2e. Volumes outside of these parameters such as between 3,000 - 10,000 mt may be considered and normalized to the basis volume.

Please submit any feedback, comments, or questions to mrts_biofuelsandfeedstocks@spglobal.com and pricegroup@spglobal.com .

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