Carbon prices surged on the European market in Friday’s session, as the EUA Dec ’26 contract briefly climbed above €74 for the first time in over a week. The contract later settled at €73.78, marking a daily increase of 3.42%.

Compared to the previous Friday, the contract posted a weekly gain of 4.38%, marking its first advance after four consecutive weeks of losses. It was also the strongest weekly performance since early June last year. Even so, current levels remain roughly €20 below the multi-year peak recorded in mid-January. 

“The rebound is likely driven by participants building new positions as well as ‘buying the dip’ from compliance entities,” according to carbon analyst Yan Qin. Carbon prices opened lower on Monday, trimming last week’s gains amid renewed uncertainty over U.S. trade policy. 

The move follows the U.S. President’s announcement of new global tariffs in response to a Supreme Court ruling that challenged the tariffs imposed last year. EU leaders said they expect the United States to uphold the agreement reached last July in Scotland.

 “A deal is a deal. The EU expects the US to honor its commitments set out in the Joint Statement – just as the EU stands by its commitments,” the Commission said in a statement. “Uncertainty is back, and given the latest muscle-flexing by European leaders, the risk of escalation is now higher than it was a year ago,” ING analysts said. 

Today’s auction reinforced the bearish sentiment in the carbon market. The sale of 2.7 million allowances — described by Carbon Pulse as “the second-weakest auction since the EU ETS began” — cleared well below the secondary market, with a cover ratio of just 1.04, suggesting extremely weak buying interest.