This newsletter was published 21.4.2021 at 10:05pm CEST.

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

EUA prices break another series of records. On Wednesday, first the auction cleared at the all-time high level, then price broke through the 45 EUR/EUA level, that has been tested a few times in the last two weeks. A decisive break was enough to keep prices elevated and trending up until the end of the day when they also cleared 46 EUR/EUA. Last days before the compliance deadline are certainly putting pressure on late buyers. EUAs refuse to dip lower, despite warnings that prices are due for a technical correction. Instead, the opposite appears to be happening, where prices keep rising with less and less sellers the higher we move. On Wednesday morning, European Climate Law agreement was reached, deciding that emissions reduction target for 2030 will be set at 55% below 1990 base. This a bit less ambitious that previously expected, as last year talks of 60% or even bigger decrease were circling around. Still, prices stayed high all morning after announcement which could suggest that market has been expecting this outcome and any higher number would push the prices up even more. In the state of extreme optimism on practically every market, it seems that looking for signs of reversal will have to wait for at least some time.

German power prices are up 1.80 EUR/MWh since last week, with the front year contract trading at 58.50 EUR/MWh. API2 coal prices are up 2.60 USD/tonne since last week, with the Cal22 contract trading at 75.100 USD/tonne. EUR/USD is up 60 points since last week and is currently trading at 1.2030.

Price development of EUA Dec2020 futures contract