PW Carben

Challenges in the energy and carbon market

The Carbon & Energy segment recorded net revenues of EUR 0.2 million in 2024 (previous year: EUR 1.9 million) and an EBIT of EUR -0.5 million (previous year: EUR 0.2 million). Business development was negatively impacted in particular by challenges in connecting to the national energy grid and delays in carbon projects resulting from regulatory changes in Brazil.

Since being connected to the national electricity grid, our biomass power plant MIL Energia Renovável Ltda (MER) has been subject to Brazil’s highly volatile electricity prices, which remained at a very low level in the first half of 2024. Additionally, from mid-2024, MER was no longer able to feed electricity into the grid, as the grid operator made connection more difficult due to new technical configurations. Legal and technical solutions are currently being developed, with implementation planned for 2025.

No carbon certificates were sold during the reporting year. Certification of the outstanding certificates from the expired green energy project at MER has been delayed, as our partner has not yet been able to complete the process due to changes under the Paris Agreement. The development of our new carbon project for forest protection in Brazil has also been delayed. Amendments to the underlying VERRA standard in 2024 have pushed back the timeline, with the first carbon certificates now expected to be issued in 2026.

To stabilise the Carbon & Energy segment in 2025 and return it to profitability from 2026, targeted measures will be gradually implemented over the course of the current year.