With Europe’s competitiveness set to dominate the informal EU leaders’ meeting on 12 February, pressure from energy-intensive industries is mounting for action on rising carbon prices and persistently high energy costs.
The latest Commitment of Traders (CoT) report from the ICE platform, published Wednesday morning, shows that investment funds reduced their net long positions (long minus short) for a second consecutive week.
After reaching a June 2023 high of €93.80 two weeks ago, EUA Dec’26 carbon prices reversed course, sliding toward €80 last Friday—a three-month low—and closing the week with an 8% drop, the steepest weekly decline in two years.
According to the European Electricity Review, an annual analysis published by Ember that examines the power sector across all EU member states, the energy transition reached a new and significant milestone last year.
Contrary to the upward momentum anticipated by many following President Trump’s rollback of tariff threats, European carbon prices moved lower on Wednesday, erasing all of the previous session’s gains. The December 2025 EUA contract settled at €86.54, down 2% on the day, marking its largest daily decline in a week.
Investment funds cut their net long positions as of last Friday, according to the latest Commitment of Traders (CoT) report from ICE released on Wednesday, in line with analysts’ expectations.
Last week, Slovak Prime Minister Robert Fico sent a letter to European Commission President Ursula von der Leyen, calling for a temporary four- to five-year suspension of the European carbon market.
Saying that last week was one of major turbulence for the European carbon market is an understatement. The market came under massive pressure, with EUA Dec’26 dropping to a five-week low before posting a 3.95% weekly decline, as prices settled at €88.49 in Friday’s session.
It came as no surprise that European carbon prices rebounded during Thursday’s session, after Donald Trump appeared to soften his stance on potential military action in Greenland and on imposing new tariffs against European nations opposing his plans.
It was a wild session in the European carbon market, with EUA Dec’25 extending losses for a second consecutive day amid record trading volumes. The move served as a reminder of how swiftly and disorderly prices can reprice when positioning begins to unwind.