The European carbon market closed out last week firmly in positive territory, registering a 2.77% weekly gain—the strongest performance in two months. The benchmark eased modestly during Friday’s session, however, snapping an eight-session winning streak.
Yesterday, the European carbon market extended its rally for an eighth consecutive session. The EUA Dec-26 contract reached an intraday high of €93.80—its highest level since June 2023—but failed to sustain the gains and settled at €92.24, marking a daily increase of 0.46%.
Following a joint meeting with his Slovak counterpart, the populist Czech prime minister Andrej Babiš said he plans to draft a letter to EU governments calling, among other measures, for a temporary suspension of the EU Emissions Trading System.
European carbon prices climbed to their strongest level since July 2023 during Monday’s trading session, with the EUA December 2026 contract settling at €90.10 after a 0.6% daily gain. The market has now extended its rally to a fifth consecutive session.
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.