The most recent Commitment of Traders (CoT) report published by the ICE platform this morning revealed that investment funds have reduced their net long positions (long term-short term) to  42,3 million allowances from 50,3 million allowances in the previous week. This means that investors are less confident about the likelihood of rising prices than they were a week ago.

Data shows that, as of last Friday, speculative traders have reduced their long-term investments by 6,7 million allowances to a total of 87 million allowances. In the same time, funds have increased their short positions by 1,5 million allowances to almost 45 million allowances.

Source: Commitment of Traders, ICE

According to a paper published this week by AlCircle, an information and business portal for the global aluminium industry, “in the recent couple of days what seems to be the real driver behind is investor behaviour.”, referring to the European carbon market. The document also added that “traders and funds are calling the shots, slashing positions in the EU market while doubling down in the UK.”

Carbon Pulse also concluded that “investment funds and ‘other financial institutions’ have shown a remarkable ability to predict long-term price movements in the European carbon market, despite holding just a fraction of total long and short positions.”

Trading data once again confirms the sentiment expressed in ICE’s latest report. EUAs closed at €71 on Friday, marking their lowest level in 2025 and posting a 4% decline for the week.