On Wednesday, the European carbon market initially extended its downtrend. However, sentiment shifted later in the day, with prices rising in response to news of a potential link between the EU and UK emissions trading schemes.
A recent analysis by Deutsche Bank economists highlights several market drivers expected to significantly impact carbon prices in 2025, which is viewed as “another transitional year for the EU Emissions Trading System (ETS) market.”
The European carbon market saw heightened volatility yesterday, influenced by both bullish and bearish factors. EUAs declined early in the session but recovered alongside gains in the gas market in the afternoon. However, further growth was limited by turbulence in the U.S. financial markets. The EUA Dec ’25 contract closed at €69.01, over €1 below […]
In the context of implementing new regulations as part of changes to the EU ETS, during last week’s EU Climate Change Committee, Member States have adopted a draft amendment to rules regarding the allocation of free allowances. The new regulation enables district heating installations in Poland and other eligible states to receive free additional allocations […]
The European carbon market rose modestly on Wednesday, breaking unexpectedly its usual correlation with natural gas prices. EUAs finished the session with a 0.42% daily gain, trading within their tightest range of the year.
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.