This newsletter was published 14.5.2025 at 17:56pm CEST

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

EUA prices remained supported since the previous week, with the market offering no major surprises. Most auctions cleared close to prevailing market prices, except for Tuesday’s auction, which settled approximately 20 ticks below the spot price at the time. The slightly reduced buying interest may have been due to many traders attending the annual carbon conference in Nice. Data from the ICE Commitment of Traders report showed a continued, steady increase in net long positions in both EUA and UKA contracts. EUAs are now trading above their 200-day moving average, and with prices up roughly 20% since hitting the yearly low just a month ago, this could signal the beginning of a more sustained upward trend. However, the broader macroeconomic environment remains fragile, with the potential for an escalation in trade tensions and tariff disputes adding to market uncertainty. Meanwhile, the prospect of renewed EU-UK emissions trading linkage is back in focus as the UK-EU Summit approaches, scheduled for next Monday in London. This renewed optimism has pushed UKA prices higher, although they still trade at a notable discount of around €12 below EUA prices.

German power prices are up by 1.50 EUR since last week, with the front-year contract trading at 88.20 EUR/MWh. API2 coal prices are down by 5.00 USD since last week, with the Cal-26 contract trading at 102.00 USD/tonne. Front-year gas prices are up by 0.560 EUR since last week, with the TTF Cal-26 trading at 33.785 EUR/MWh. EUR/USD is down by 150 points since last week and is currently trading at 1.1200.

Price development of EUA Dec2025 futures contract