Insights > Analysis > ANALYSIS: Headline-driven volatility set to persist in EU carbon market amid lingering policy nerves

ANALYSIS: Headline-driven volatility set to persist in EU carbon market amid lingering policy nerves

Published 19:06 on February 6, 2026 / Last updated at 19:06 on February 6, 2026 / and / EMEA (Compliance Markets & Taxes, Europe), Insights (Analysis), International (CBAM & Tariffs)

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Media reports this week suggesting the European Commission plans to relax the planned phaseout of free carbon permit allocation to industry sent benchmark EUAs plunging at their lowest level for four months, but analysts have cautioned that the selling has been highly speculative and the market is likely to remain fundamentally tight in 2026.
Media reports this week suggesting the European Commission plans to relax the planned phaseout of free carbon permit allocation to industry sent benchmark EUAs plunging at their lowest level for four months, but analysts have cautioned that the selling has been highly speculative and the market is likely to remain fundamentally tight in 2026.


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