EUAs reached a milestone at 50 EUR/EUA. End of compliance period did not prove to be a problem for demand yet as prices keep climbing higher at the same pace as they did throughout April. Spot volumes have come down considerably since last week, however futures are seeing the same interest as before. Most of correlated and global markets have held their gains too. Continuation of bullish sentiment may continue to absorb all dips and keep prices at elevated levels. In comparison to the year 2019, EU ETS non-compliance delinquency rate in 2020 rose by more than 20%, which was caused by almost 400 installations and airlines. More than 100 of those were airlines, most likely due to liquidity issues caused by pandemic.

German power prices are up 1.85 EUR/MWh since last week, with the front year contract trading at 60.85 EUR/MWh. API2 coal prices are up 1.80 USD/tonne since last week, with the Cal22 contract trading at 77.10 USD/tonne. EUR/USD is down 100 points since last week and is currently trading at 1.2000.

Price development of EUA Dec2021 futures contract