This newsletter was published 12.5.2021 at 4:48pm CEST

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

Bullish run in EUA continues with prices at all-time highs. Market has already gained more than 60 percent this year, which makes EUAs one of the best performing commodities. In the last week prices have rallied almost 5 EUR in only three trading days with higher volume in comparison to average volume during April. Retracements in this period have been short lived. Latest strong price action can be contributed to the decision of The European Commission which stated that there will be no intervention in EU ETS in order to keep prices from increasing. They added that tradable market gives EU ETS its credibility. Growing assets in KFA Global Carbon ETF indicate steady inflows to emissions market. The lack of supply and strong demand coupled with free allocation delays continue to push the market up. Auction supply is especially low this week as there are none on Thursday and Friday. As bullish sentiment in commodities and energy continues there are no indications of trend change in the short term.

German power prices are up 6.55 EUR/MWh since last week, with the front year contract trading at 67.40 EUR/MWh. API2 coal prices are up 2.80 USD/tonne since last week, with the Cal22 contract trading at 79.80 USD/tonne. EUR/USD is up 100 points since last week and is currently trading at 1.2100.

Price development of EUA Dec2020 futures contract