European carbon prices moved lower during Friday’s trading session, with the EUA Dec’26 contract shedding almost €1 to settle at €81.79. The decline left the benchmark contract 1.8% below the previous Friday’s close, reversing part of the gains recorded earlier in the month.
According to Ember’s latest report, successive heatwaves across Europe in June and July drove up electricity demand as air-conditioning use surged, while simultaneously constraining nuclear, gas, coal and hydropower generation.
The latest Commitment of Traders (CoT) report from ICE, released on Wednesday morning, shows that investment funds increased their net long positions—the difference between long and short positions—from the ten-week low reached in the previous reporting period.
After remaining largely unfazed by the sharp fluctuations across energy-related markets in recent sessions, the European carbon market finally showed signs of renewed correlation on Thursday, with EUA prices responding more visibly to developments in the wider energy complex.
The latest Commitment of Traders (CoT) report from the ICE platform, released on Wednesday morning, shows that investment funds resumed reducing their net long positions—the difference between long and short positions—after a brief pause the previous week.
European carbon prices remained confined to the narrow trading range seen over the past several sessions, closing Tuesday at €81.34, up €0.48 on the day. The advance snapped a three-session losing streak, although the broader trend remained bearish, with Tuesday marking only the second daily gain in the past nine trading sessions.
Reuters periodically publishes a survey of analysts’ forecasts for the European Union’s carbon market, providing a snapshot of market expectations for EU ETS allowance prices. The latest poll, published on Friday, reflects analysts’ updated outlook following recent policy developments.
The European carbon market traded within a narrow €3 range last week, reflecting a notable easing in volatility following the European Commission’s publication of its EU ETS reform proposal, as market participants digested the proposed changes and reassessed their implications.
The European Energy Exchange (EEX) published an updated 2026 auction calendar alongside the preliminary auction schedule for 2027. The revision reflects adjustments to auction volumes resulting from the Market Stability Reserve (MSR), following the publication of the 2025 Total Number of Allowances in Circulation (TNAC) by the European Commission on 29 May.
According to a report published on Wednesday by CEE Bankwatch, the Modernisation Fund maintained a high level of investment in 2025, disbursing approximately €5.4 billion. Although substantial, this was below the record €5.8 billion invested in 2024.