According to EEX, the common auction platform for EU Member States, today’s sale ranked among the weakest in the past four years, underscoring subdued bidding interest. A total of 3.27 million allowances cleared at €75.56, below the prevailing secondary market price, with a bid-to-cover ratio of just 1.08 compared with this year’s average of 1.68.
The latest Commitment of Traders (CoT) report from the ICE platform reveals that, at the end of last Friday, investment funds expanded their net long positions to a massive 78 million allowances, after rising for the fifth consecutive week.
The downward trend that began late last week continued on the European carbon market on Monday, with EUAs falling to their lowest level in a week before closing at €76.21, a daily decline of 1.73%.
The European carbon market ended last week on a softer note, with EUA Dec’25 settling Friday at €77.55, down €0.29 on the day. Despite the modest retreat, carbon prices still advanced 2.4% over the week.
The European Commission announced this week that 53 airline operators will receive around 1.3 million allowances, worth approximately €100 million, for the use of sustainable aviation fuels (SAF) in their 2024 operations.
European citizens have a diminished perception of the EU’s Emissions Trading System (ETS). A recent survey carried out by CAPABLE, an EU-funded initiative, together with the Institute of Environmental Science and Technology at the Universitat Autònoma de Barcelona (ICTA-UAB), reveals that Europeans hold mixed views on 15 climate change policies.
In Tuesday’s session, the European carbon market rose to its highest level since mid-February, with gas prices struggling to keep pace. EUA Dec ’25 settled at €77.51, gaining nearly €2 in just three days.
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.
The European carbon market rally lost momentum on Thursday, with EUAs closing at €75.54 after a 2.02% drop — the steepest in six weeks — wiping out all of last week’s gains.
Bloomberg reports that the International Energy Agency (IEA) expects global LNG production to rise by 7% next year — the largest increase since 2019 — driven mainly by new U.S. facilities nearing completion.