This newsletter was published 18.3.2026 at 17:51pm CEST

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

EUA prices declined further amid calls from EU member states to fast-track carbon market reforms and reduce cost pressures on industry. In a joint appeal to the European Commission and the European Council, the countries requested that the review of the EU Emissions Trading System be presented by the end of May, significantly earlier than planned. They also advocated for extending free carbon allowances and easing their phaseout beyond 2034 to reduce the burden on industrial sectors. Brussels has already indicated it is preparing faster action, including reforms to the Market Stability Reserve, which regulates the supply of emissions permits. These changes are expected in the coming months, ahead of a broader ETS review that could now arrive by the end of the second quarter. The measures aim to curb price volatility and provide short-term cost relief. Carbon markets have reacted strongly to the prospect of intervention. Benchmark Dec26 futures prices recently dropped to an 11-month low of around €65 per tonne, with traders anticipating increased supply and regulatory adjustments. The push comes amid rising energy prices linked to geopolitical tensions in the Middle East, which have intensified concerns over Europe’s industrial competitiveness. Some countries have even suggested suspending parts of the system, though others continue to support it as a key climate policy tool. Overall, momentum is building for targeted reforms designed to stabilise prices while maintaining the long-term trajectory of emissions reductions.

German power prices are up by 1 EUR since last week, with the front-year contract trading at 92.75 EUR/MWh. API2 coal prices are up by 6.00 USD since last week, with the Cal-27 contract trading at 128.75 USD/tonne. Front-year gas prices are up by 3.475 EUR since last week, with the TTF Cal-26 trading at 39.110 EUR/MWh. EUR/USD is down by 60 points since last week and is currently trading at 1.1510.

Price development of EUA Dec2026 futures contract