The European carbon market fell 2% in early trading on Monday, reacting to the results from the European Parliament election this weekend. The EUAs Dec ’24 traded below the €70 mark for the first time since 17 May.

“The result of yesterday’s European Parliament election, which resulted in more seats for climate-skeptic parties and the call for a snap election in France, should affect the carbon market bearishly,” wrote Energi Danmark in a note this morning.

Exit polls show that center-right, left-liberal, and green parties would retain a majority of 460 seats in the future Parliament. However, Greens have suffered heavy losses with just 53 deputies compared to 71 in the current legislation raising fears of weakening climate ambition.

The biggest disappointment for the Greens came from Germany where the party fell by 8,5% compared to the previous elections, “punished by voters for the cost of policies to reduce CO2 emissions,” according to Reuters. 

“I think the biggest mistake we would do is now to abandon the Green Deal,” declared Green lead candidate Bas Eickhout, commenting on the results of the elections. He also added that “one big lesson is that our biggest problem so far is that the Green Deal has been too much a Brussels agenda”.