On the European carbon market, prices edged higher on Wednesday, supported by stronger gas. The EUA Dec’25 contract touched an intraday high of €71.54 before closing at €71.29, a modest daily gain of €0.13.

In the gas market, the TTF front-month contract advanced at a faster pace, finishing the session up 2.17% — its steepest daily rise in three weeks. The rally was fueled by media reports that the EU is considering fresh sanctions against Russia, adding further bullish pressure to gas prices.

According to the British government, quoted by Reuters, EU leaders “discussed how further pressure – including through sanctions – could be placed on Putin until he showed he was ready to take serious action to end his illegal invasion.”

The upward trend extended into Thursday morning, with European carbon prices opening higher as gas continued to gain. Optimism over a potential peace deal faded, while reports highlighted escalating strikes on Ukrainian energy infrastructure, including critical gas facilities.

“The likelihood of a quick resolution to the conflict with Russia now seems unlikely,” said Daniel Hynes, senior commodity strategist at ANZ. Oil prices also strengthened, with “uncertainty over efforts to end the war in Ukraine lending support,” Reuters reported.