Euro Markets: EUAs drop by most in 3 weeks as falling gas prices end carbon’s 6-day winning streak
EU carbon allowance prices gave up Monday’s gains and recorded their first loss in six days, returning to the middle of their well-established range as activity picked up on Tuesday after a public holiday on northern Europe, while gas prices continued to drift for a third day as traders eyed news of additional supply deals.
Read MoreTaxes for UK’s woodland, peatland carbon schemes under review
The income, value-added, and inheritance taxes owed through participation in the UK’s carbon standards for woodland and peatland are still somewhat under review, but there may be some scope to qualify for tax relief, particularly with commercial woodland, experts said on Tuesday.
Read MoreUK govt puts £14 bln into Sizewell C reactor as part of renewed push on nuclear
The UK government is putting £14.2 billion into building the long-debated Sizewell C nuclear power plant, in a push to kickstart a nuclear programme that includes building new small modular reactors and cutting-edge fusion technologies, it announced on Tuesday.
Read MoreEuro Markets: EUAs cut loose from TTF gas link and rise to three-week high as macro, demand optimism grow
European carbon prices advanced for a sixth day, disconnecting from a weaker natural gas market as a holiday across many parts of Europe robbed the EUA market of liquidity and handed the initiative to the bulls, with traders eyeing US-China trade talks this week, as well as the prospect of lower renewables output and increased cooling demand.
Read MoreEuro Markets: EUAs secure 4% weekly gain on gas strength, UKAs slip as market takes stock of uncertainty
European carbon prices moved in a thin range across Friday, boosted by another strong auction and tracking supportive energy prices for much of the day, as the benchmark EUA secured a 4% weekly gain, while UKAs eased marginally lower within participants continuing to react to a lack of clarity on timeline for linkage of the market to the EU ETS.
Read MoreEuro Markets: EUAs struggle for direction as flat market breaks from gas correlation
European carbon allowance prices rose as high as 2% on Thursday morning, initially following gas and boosted by a strong auction, before easing back across the afternoon and breaking their TTF correlation to settle flat on the day, in what sources described as directionless movements driven mainly by some profit taking.
Read MoreBRIEFING: Key details of ETS link-up with EU still up for negotiation, UK says
The end goal of talks on linking the EU and UK emissions trading schemes (ETSs) is to ensure “fungibility” between allowances on the two sides, the UK ETS Authority said this week, without giving many further details on upcoming talks.
Read MoreDATA DIVE: How UK carbon prices have responded to EU ETS linking headlines in 2025
UK ETS allowances are nearly £20 more expensive than they were at the beginning of 2025, with the rise in price thanks in large part to several speculative articles – as well as later official announcements – reporting that the UK and EU aim to connect their two emissions trading schemes (ETSs), but analysts have highlighted that the volatile nature of the headline-driven market is also unlikely to change soon.
Read MoreEuro Markets: EUAs end almost unchanged as carbon tracks swings in gas, while UKAs hold above key level
EU carbon prices gave up a mid-morning rally to end Wednesday fractionally higher, after early strength driven by firmer natural gas and equities as well as the lack of a daily auction, with participants eyeing a recent upside resistance zone around €74.00, wile UKAs continued to hold on just above a key psychological level.
Read MoreBRIEFING: UK carbon regulator could cut reporting burdens and unify oversight
Establishing a dedicated carbon regulator in the UK could reduce reporting burdens, raise data quality, and strengthen investor confidence by standardising emissions accounting and coordinating oversight, proponents argued on a webinar on Wednesday, building on mounting calls for the establishment of an entity to oversee emissions policy.
Read More
