European carbon prices plunged sharply in yesterday’s session after reports emerged that the Italian government is calling for a suspension of the EU ETS, echoing a similar request made by the Slovak Prime Minister in January and remarks from German Chancellor Friedrich Merz, who earlier this month suggested a potential “pause” of the EU ETS.
BusinessEurope, the leading voice of companies across the European Union, representing 40 national business federations, warns that rising carbon costs are placing additional strain on businesses, adding to already high energy prices.
The latest Commitment of Traders (CoT) report from the ICE platform, released Wednesday morning, indicates that investment funds trimmed their net long positions (the difference between long and short positions) for the fifth straight week.
After climbing to a five-day high on Friday, the European carbon market opened the week with sharp losses as the tariff saga continued to unfold over the weekend. The December 2026 EUA contract settled at €71.38, down 3.25% on the day, wiping out all of the previous session’s gains.
Carbon prices surged on the European market in Friday’s session, as the EUA Dec ’26 contract briefly climbed above €74 for the first time in over a week. The contract later settled at €73.78, marking a daily increase of 3.42%.
A new report from Eurostat shows that greenhouse gas emissions in the EU economy rose by 1,1% in the third quarter of 2025 compared with the previous quarter. The figures are seasonally adjusted, meaning that recurring seasonal factors such as weather conditions and holiday periods have been excluded.
The latest Commitment of Traders (CoT) data released this morning by trading platform ICE show that speculative investors have trimmed their net long exposure in EUAs for a fourth consecutive week, as long positions declined further and short positions continued to build.
The week opened with further price declines on the European carbon market. The EUA Dec’26 extended its recent downward trend for a fifth consecutive session, falling another €1.50 to settle at €69.18 — the lowest closing level since late April 2025.
Last week ended with heavy losses on the European carbon market, as EUA Dec’26 settled at €70.68, its lowest close since early May 2025. The contract dropped 10% over the week alone, marking the steepest weekly decline in more than two years and extending losses to a fourth consecutive week.
Lately, attention in the carbon market has shifted to the upcoming revision of the EU ETS, after the European Commission announced a “comprehensive climate package” for the second half of 2026. In this context, media speculation about looser regulations has weighed on sentiment, sending a bearish signal for EUAs.