Record volatility roils EU carbon markets
Traders are focused on the impact of Market Stability Reserve measures due to be introduced from 2019 to 2023
European carbon allowances had their most volatile five-day session ever last week, as a record high triggered profit-taking that led to panic selling. The market was hit by a series of events which persuaded speculators to ditch sizeable holdings after enjoying a trebling of prices this year. After reaching a ten-year high at €25.79 on Monday, EU Allowances (EUAs) plunged to as low as €17.90 on Friday. Monday's record high capped a six-day rally that saw EUA prices spike by nearly 28%, as traders continued to bet that measures to eliminate a chronic oversupply of permits would boost prices yet further. Analysts have recently forecast that EUAs could reach €30 by the end of the year. The e
Also in this section
9 January 2026
A shift in perspective is needed on the carbon challenge, the success of which will determine the speed and extent of emissions cuts and how industries adapt to the new environment
2 January 2026
This year may be a defining one for carbon capture, utilisation and storage in the US, despite the institutional uncertainty
23 December 2025
Legislative reform in Germany sets the stage for commercial carbon capture and transport at a national level, while the UK has already seen financial close on major CCS clusters
15 December 2025
Net zero is not the problem for the UK’s power system. The real issue is with an outdated market design in desperate need of modernisation
