According to ICE’s Commitment of Traders latest report, published on Wednesday and based on market data up to 3 October, investment funds resumed increasing their net long positions in EUAs after a modest reduction in the previous week.
The European carbon market extended its upward momentum in early Friday trading, after the EUA Dec ’25 contract settled at €77.43 on Thursday, the highest close in two weeks. This morning, carbon briefly reached €79.27, a level last seen on February 17.
The latest Commitment of Traders (CoT) report released by ICE yesterday, based on data as of last Friday, showed that investment funds trimmed their net long holdings to 76.2 million allowances, down from 78.0 million the previous week.
On the final day for surrendering allowances for the previous year’s emissions, the European carbon market reversed course, ending a two-day advance. The EUA Dec ’25 contract settled at €75.72 on Tuesday, down 1.39%.
On Friday, the market saw modest gains, with EUAs closing at €75.98. Despite this uptick, prices ended the week 2% lower, marking the steepest weekly drop since early August. Trading activity also eased, with weekly turnover in Dec’25 contracts sliding from 137 million allowances to 120 million, the lowest level this month.
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.