Overview

The carbon market has been under increasing pressure, continuing the softer trajectory since January, after the German Chancellor Friedrich Merz said that the EU ETS may need reform. Consequently, the market dropped from €79 into the €72s during last Thursday's trading, coupled with lower gas prices and easing weather-related demand further weakened the near-term EUA support. The market finished last week continuing it's bearish trend, and with all technical levels broken, it is difficult to know where the stabilisation could lie.

With the policy uncertainty as well as the technical levels broken coupled with milder weather and cheaper gas, there is little forecast about where the near-term EUA market will trade