This newsletter was published 2.4.2025 at 17:07pm CEST

The current prices on the European carbon market are as follows:

April started on a positive note as EUAs posted a gain of more than 2 EUR. Price action was accompanied by healthy volume, while the rally offered no pullbacks. Many believe the move was driven by technical buying, which seems likely as fundamentals remained intact. Lower prices have attracted some retail buying, providing additional support to the market. Despite the net long position held by investment funds, there have been practically no sharp moves to the downside. Although these funds have substantially reduced their exposure from recent highs, their position still exceeds 30 million tonnes, according to the weekly CoT report. Additionally, overall exposure declined significantly last week, largely due to reduced open interest following the expiration of March options. Auctions in the past week showed no signs of deviation from the secondary market, consistently clearing near prevailing spot prices with stable cover ratios. Other markets in the European energy complex have been moving in tandem with EUAs, particularly the front-month TTF contract. Underground gas storage levels currently sit below 34 percent, marking their lowest point in years. However, with the end of the winter season, some inflows are expected. On the other hand, carbon prices could face downward pressure in the coming weeks. Concerns over tariffs on EU exports to the U.S., along with lower gas prices and renewable power generation may weigh on EUAs.

German power prices are up by 0.35 EUR since last week, with the front-year contract trading at 85.80 EUR/MWh. API2 coal prices are up by 5.80 USD since last week, with the Cal-26 contract trading at 111.80 USD/tonne. Front-year gas prices are up by 1.390 EUR since last week, with the TTF Cal-26 trading at 36.550 EUR/MWh. EUR/USD is up by 60 points since last week and is currently trading at 1.0850.

Price development of EUA Dec2025 futures contract