The weekly Commitment of Traders (CoT) report, published by the ICE platform this week, revealed that as of last Friday, investment funds had increased their net long positions (long positions minus short positions) to 9 million allowances—nearly 20% higher than the previous week.

In the week ending May 9, speculators reduced their long positions from 59.3 million to 57.2 million allowances, marking a decline of 2 million. At the same time, there was an even larger decrease in short positions, which dropped by 3.6 million to 48.2 million allowances.

Market participants often view speculators’ positions as a key indicator of sentiment. A “net long” position suggests that investors are betting on a rise in carbon prices, while a “net short” indicates expectations of a decline in EUA prices.

The latest ICE report once again aligns with trading data, confirming this bullish sentiment. Since early April, investment funds have steadily increased their net long positions, while the price of Dec’25 EUAs has risen by nearly 9%.

Investment funds have also accumulated significant holdings in UKAs, amid growing expectations that UK and EU leaders will agree to link the two carbon markets. As a result, as of May 2, net long positions in UKAs reached 18.5 million allowances—the highest level ever recorded.