The European carbon market continued to strengthen on Monday, with EUA Dec-26 prices settling at €81.57, up €0.99 from the previous session. Prices accelerated higher in late trading, reaching their highest closing level since February 10.
European carbon prices ended Friday’s session at €80.58, their strongest settlement in three weeks, posting a 4.4% weekly gain as the market consolidated after the sharp upside move seen earlier in the week.
Three of Europe’s largest steel producers—ArcelorMittal Europe, Thyssenkrupp Steel, and Voestalpine, which together account for around 60% of Europe’s integrated steel production—are calling for what they describe as an “urgent and pragmatic reform” of the EU ETS.
Investment funds trimmed their net long positions, the difference between bullish and bearish bets, for a second consecutive week, according to the latest Commitment of Traders (CoT) report released by ICE on Wednesday morning.
While most climate-related coverage of the FIFA World Cup centers on the tournament’s carbon footprint, BBVA analysts have highlighted a lesser-known trend in the European carbon market that has emerged during past competitions.
Ahead of the European Commission’s comprehensive proposal to revise the EU Emissions Trading System (EU ETS), expected in July 2026, several key policy changes were reportedly discussed during a meeting on Wednesday between Commission President Ursula von der Leyen and EU commissioners.
As the European Union prepares for the upcoming July review of the EU Emissions Trading System (EU ETS), debate over the future of the bloc’s flagship carbon market is intensifying, with stakeholders advancing different priorities and concerns regarding the balance between economic competitiveness and climate ambition.
Following the strong rally that began in the second half of May and pushed EU Allowance (EUA) prices above the €80 threshold for the first time since February, the European carbon market lost momentum during the first week of June.
The latest Commitment of Traders (CoT) report from the ICE platform, released on Wednesday morning, indicates that investment funds significantly increased their net long positions—the difference between long and short positions. This increase in net long exposure points to improving investor sentiment and suggests that speculative traders are becoming more optimistic about future price prospects.
European carbon allowances settled at €80.63/t at the end of May, their highest month-end level since 9 February. Prices gained 9.27% during the month, marking the strongest monthly increase in 16 months.