Platts launches German greenhouse gas quota (THG) assessments Nov 1

Platts, part of S&P Global Commodity Insights, has launched daily assessments for German greenhouse gas reduction quotas (Treibhausgasminderungsquote or THGs), effective Nov. 1.

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

Following a proposal, published Sept. 4 here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/090424-platts-proposes-to-launch-german-greenhouse-gas-quota-thg-assessments, Platts has launched prices for five different ticket types for the German THGs (also referred to as the German GHG quota).

Platts has launched 15 new daily assessment symbols and will assess the current and next year prices initially, while the previous year assessments will begin in January 2025.

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

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 the last working day to April 15.

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

As the market is 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 are published daily to a 1630 London time market close in Eur/mtCO2e, with the exception of the THG-Advanced (single counting) type, which will be published in Eur/gigajoule.

The assessments 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 reflect a basis volume of 5,000 mt of CO2e. Volumes outside of these parameters, such as within 3,000-10,000 mt, may be considered and normalized to the basis volume.

The new assessments will be published in Platts Biofuelscan, Biomass-Based Diesel Report, Fuel Ethanol Report, Platts Connect and PBF1010.

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