Overview

European carbon prices (EUAs) posted their third consecutive weekly increase, though the market ended Friday with a modest 0.5% decline amid conflicting pressures from falling equities and rising energy prices. Dec-25 EUAs opened the session weak, slipping from €81.28 to €80.83 in early trading before recovering ahead of the daily auction. The sale cleared slightly below the spot price but drew the strongest bid-to-cover ratio in three months, helping secondary market prices briefly climb to €81.75 before easing again. Prices repeatedly tested support around €81.10 through the morning, but a downturn in US equities triggered a sharp sell-off that drove EUAs down to €80.44 within an hour. Despite this, buying interest later pushed the contract back above €81.00, where it oscillated until the close. Dec-25 ultimately settled at €80.93 on ICE. Market participants highlighted the tug-of-war between weak equities and firm energy prices as key drivers throughout the week.