European carbon prices started the week on a strong footing on Monday, carrying over upward momentum from Friday, when the market ended the week up 1.41%, marking its highest weekly gain in a month.
European carbon prices have traded largely flat since Wednesday, with the market showing little reaction to the return of daily EUA auctions and forecasts revised toward warmer conditions, factors that would normally exert downward pressure on prices.
The latest Commitment of Traders (CoT) report from the ICE platform, published on Wednesday morning, shows that investment funds reduced their net long holdings (long positions minus short positions) for a second consecutive week.
The latest Commitment of Traders (CoT) report from the ICE platform, published on Wednesday morning, shows that investment funds lifted their net long holdings (long positions minus short positions) to another all-time high at the end of last week.
The European carbon market was broadly steady on Friday, with the EUA Dec’25 contract settling at €83.79, down 0.13%, after briefly touching €84.40—its highest intraday level since January. Trading volumes were notably light, with just 20.5 million allowances exchanged, the lowest level seen since late October.
On Wednesday, the European Council and Parliament struck a provisional deal to amend the European Climate Law, introducing a binding target of reducing net greenhouse gas emissions by 90% by 2040 compared to levels recorded in 1990.
The latest Commitment of Traders (CoT) report from the ICE platform, published on Wednesday morning, shows that investment funds lifted their net long holdings (long holdings minus short holdings) to another all-time high at the end of last week.
According to ING’s commodities outlook, the European carbon market is expected to tighten in 2026 as supply declines— a development that should keep upward pressure on prices next year. This reinforces the broader analyst consensus that carbon prices are likely to continue rising into 2026.
The wave of optimism that recently lifted the European carbon market to its highest in nine months appears to have eased last week, as prices for Dec’25 contracts slipped in four of the five trading sessions, suggesting a cooling of momentum.
On Wednesday, the European Commission released its latest Carbon Market Report, offering “a comprehensive overview of how the EU ETS performed in 2024 and the first half of 2025.”