After reaching a new eight-month high of €77.58 on Wednesday, the European carbon market failed to sustain its gains. EUAs closed Friday’s session at €75.77, recording a modest daily increase of €0.23 but ending the week down 0.36%,  their first weekly loss since mid-August.

Also notable, carbon traded within a narrow range of just €0.93, a pattern more typical of holiday periods. This is unusual given that only two weeks remain until the compliance deadline at the end of the month. Such limited price movement points to cautious sentiment with traders closely monitoring political talks.

On Friday, diplomats speaking on condition of anonymity told the media that the 2040 climate target, originally scheduled for approval by EU environment ministers on September 18, was postponed and will instead be decided at the European Council meeting in October.

According to Politico, “In total, 11 of 27 countries asked for a delay during a preparatory meeting on Friday: the Czech Republic, Malta, Austria, Slovakia, Romania, Hungary and Latvia besides Italy, France, Germany and Poland.”

The European Commission’s proposed 90% emissions reduction target remains highly controversial, with many Member States warning it could undermine industrial competitiveness while major economies make no comparable efforts. “We cannot support the text as it stands right now. It is not an ideal geopolitical timing,” an EU official told Euronews.

Early Monday, trading on the European carbon market pointed to a lack of clear direction while on the gas market, the TTF front-month contract traded lower amid steady LNG supply and mild, windy weather. With maintenance on Norway’s gas infrastructure nearing completion, additional bearish pressure is expected to weigh on both gas and carbon prices.