The most recent Commitment of Traders (CoT) report published by the ICE platform this morning revealed that investment funds have reduced their net long positions (long term-short term) to 42,3 million allowances from 50,3 million allowances in the previous week. This means that investors are less confident about the likelihood of rising prices than they […]
Gas demand in Europe rose significantly last month, according to LSEG data. Colder weather and low wind conditions across most of Europe have weighed on renewables generation and boosted gas consumption.
Last month was highly volatile for the European carbon market. In the initial days of February, the EUAs recorded prices that remained fairly constant, oscillating at around €81. However, in the second part of the month, prices started to decline, concluding the month at €71 and posting “their worst February in nine years” as stated […]
The most recent Commitment of Traders (CoT) report published by the ICE platform revealed that investment funds have reduced their net long positions (long term-short term) to 50,3 million allowances from 58,7 million allowances in the previous week. A similar trend was observed for the TTF gas contracts.
The European carbon market continues its downward trend, with EUAs dropping briefly to €71.15 during trading on Tuesday, a level last seen in December. The market eventually closed at €71.75, reflecting a 2.59% daily decline.
According to a recent paper by Carbon Market Watch and WWF, in 2023 alone, heavy industry received free allowances worth around €40 billion. Furthermore, sectors such as cement, steel and chemicals were over-subsidised, being rewarded with more pollution permits than their actual emissions.
According to a leaked legislative proposal seen by the media, the European Commission plans to simplify and strengthen the carbon border adjustment mechanism (CBAM). Under current legislation, CBAM will be phased in from 2024 and 2034 while gradually replacing free allocation under the EU ETS.
The European carbon market fell along with gas yesterday, maintaining a downtrend that started on Tuesday. EUAs closed at €78.05, marking a 2.79% daily loss, the same decline as in the previous session. This brings prices back to levels last seen a month ago.
The European carbon market dropped below €79 for the first time in almost a month on Tuesday morning, tracking massive declines in gas prices. The TTF front month was trading around 6% lower amid a combination of peace talks, warmer weather and rumours about a possible price cap.
According to ABN AMRO, the third-largest bank in the Netherlands, the bullish sentiment that is currently dominating the carbon market is “mainly driven by the rising uncertainty in the European gas market along with the geopolitical ambiguity surrounding US trade policies.”