The latest Commitment of Traders (CoT) report from the ICE platform, released on Wednesday morning, indicates that investment funds significantly increased their net long positions—the difference between long and short positions. This increase in net long exposure points to improving investor sentiment and suggests that speculative traders are becoming more optimistic about future price prospects.
European carbon allowances settled at €80.63/t at the end of May, their highest month-end level since 9 February. Prices gained 9.27% during the month, marking the strongest monthly increase in 16 months.
A recent working paper by the European Central Bank examining the employment effects of carbon pricing under the European Union’s Emissions Trading System found that higher carbon prices have a persistent negative effect on overall employment.
The European carbon market staged a strong rebound during Tuesday’s trading session, with EUA Dec’26 contracts settling at €78.03 after posting an impressive daily gain of €1.28. The rally pushed prices to their highest closing level since early February.
As the European Union prepares for the next phase of reform to its Emissions Trading System (EU ETS), the mechanism is facing growing political and economic pressure due to rising compliance costs and concerns over industrial competitiveness.
The European carbon market advanced for a third consecutive week, with Dec’26 EUA futures settling at €76.92 on Friday. The contract gained 2.66% on the day, its strongest daily increase in two weeks, and closed 1.74% above the previous Friday’s settlement.
Ahead of next week’s Competitiveness Council meeting on 28 May, Czechia, Greece, Poland and Romania submitted an information note entitled “The Impact of the EU ETS on Energy-Intensive Industries,” urging a more realistic adjustment of benchmarks to better reflect industrial and energy market conditions.
The latest Commitment of Traders (CoT) report released by the ICE platform on Wednesday morning indicates that investment funds resumed reducing their net long positions — the difference between long and short positions — after briefly pausing the decline the previous week.
According to media reports citing a draft proposal due to be presented today, the EU executive is considering granting more free carbon allowances to the fertiliser industry — a move that could be viewed as a step back from the bloc’s strict climate ambitions as Brussels prioritises industrial competitiveness and energy security amid soaring fertiliser […]
ABN AMRO has revised downward its short- and long-term carbon market outlook, according to its latest report published this week. The bank adjusted both its baseline scenario and two alternative scenarios reflecting the linkage between the UK ETS and the EU ETS, as well as the inclusion of carbon removals.