The European carbon market recorded another positive session on Tuesday, extending its winning streak to four consecutive days as bullish sentiment persisted. EUA Dec’26 futures settled at €72.51, marking their highest closing level in three weeks.
The European carbon market saw another headline-driven and volatile session yesterday. EUA Dec’26 surged 3.2% after an article published by Bloomberg indicated that the EU may take a less aggressive approach to easing costs.
The European carbon market showed signs of stabilization heading into the weekend, with the Dec’26 EUA contract settling on Friday at €71.67. The contract posted only a marginal increase of €0.02 from the previous close, with a daily range of just €1.36, the lowest in three weeks.
The latest Commitment of Traders (CoT) report from the ICE platform, released Wednesday morning, indicates that investment funds have continued to reduce their net long positions (the difference between long and short positions) for the ninth consecutive week.
In its latest report, Signal without response: Why the EU ETS needs resolve, not redesign, Allianz Economic Research argues that the core issue is not high carbon prices, but rather the lack of price predictability and insufficient complementary support to enable capital-intensive industries to undertake the necessary low-carbon transition.
On Friday, the European carbon market failed to fully rebound from early losses, despite a sharp morning rally of nearly 10%. By the end of the session, the EUA Dec’26 contract settled at €67.66, posting a 6.30% daily gain—the strongest increase since early May 2024.
In early trading on Friday, the European carbon market posted a sharp increase, with the Dec ’26 EUA contract briefly gaining more than €6 and recouping all losses from the week, when all previous sessions had closed lower.
The latest Commitment of Traders (CoT) report from the ICE platform, published on Wednesday morning, shows that investment funds have reduced their net long holdings (long positions minus short positions) for eight consecutive weeks.
In Tuesday’s session, EUA Dec’26 briefly dropped below €65—a level not seen since April last year—before closing at €66.65, down 3.41% day-on-day, as markets continued to absorb political signals ahead of the 19–20 March European Council meeting.
European carbon prices climbed in early trading yesterday, with the EUA Dec’25 contract hitting an intraday peak of €70.35 in the afternoon. The rally later faded, however, after a letter from Ursula von der Leyen ahead of Thursday’s gathering of EU leaders in Brussels weighed on sentiment, leaving prices to settle at exactly €69, more […]