It was a wild session in the European carbon market, with EUA Dec’25 extending losses for a second consecutive day amid record trading volumes. The move served as a reminder of how swiftly and disorderly prices can reprice when positioning begins to unwind.

In contrast to the gas market, EUA Dec’25 experienced yet another sharp move, closing the day at €84.96, its lowest settlement in five weeks. Over the past two sessions, carbon prices have fallen an impressive 9%, with “geopolitical uncertainty playing a greater role in the downside risk than fundamentals,” according to analysts quoted by Montel News.

Equally striking was the daily trading volume, which reached 157 million allowances, by far the highest ever recorded. By comparison, the average daily volume last year stood at 28.7 million allowances. “The move was also driven by profit-taking after the contract reached two-year highs late last week,” Mind Energy said in a note on Wednesday.

The European carbon market is trading with mixed sentiment early Wednesday, with attention focused on Donald Trump’s address at the World Economic Forum in Davos later today. Market participants also expect concerns surrounding Greenland to remain in focus through the remainder of the week, at least.