Page 104 - 2025 HEG Daily Energy Market Report

CARBON (€/T)
THU FRI VAR D-1 VAR W-1 AVG. MAX MIN
5/2 6/2 FROM THE BEGINNING OF THIS YEAR
CO2 EUA DEC 2026 78.20 78.73 0.53 -2.53 86.81 92.24 78.20
CO2 EUA DEC 2027 80.38 80.88 0.5 -2.68 89.27 94.80 80.38
CO2 EUA DEC 2028 82.83 83.37 0.54 -2.75 92.06 97.73 82.83
CO2 EUA DEC 2029 85.68 86.18 0.5 -2.92 95.25 101.04 85.68
UK ETS DEC 26 EUR 65.99 65.32 -0.67 -6.13 76.93 84.02 65.32
UK ETS DEC 27 EUR 68.86 68.12 -0.74 -6.47 80.25 87.61 68.12
UK ETS DEC 28 EUR 72.25 71.39 -0.86 -6.94 83.98 91.46 71.39

After coming under pressure early in the session, European carbon prices
rebounded to end Friday modestly higher. The initial sell-off was sparked by
research indicating that the potential transfer of EUAs from a dedicated reserve
into circulation could have a bearish impact. By the close, the EUAs expiring in
Dec-2026 edged 0.7% higher at 78.73 EUR/tonne.

CO2 EUA

EXCHANGE RATES

THU FRI VAR D-1 VAR W-1 AVG. MAX MIN
5/2 6/2 FROM THE BEGINNING OF THIS YEAR
RATE EUR/USD 1.1798 1.1794 -0.0004 -0.0125 1.1748 1.1974 1.1617
RATE EUR/GBP 0.8691 0.8679 -0.0012 0.0017 0.8680 0.8744 0.8616
RATE GBP/EUR 1.1506 1.1522 0.0016 -0.0023 1.1521 1.1606 1.1436

The EUR/USD pair was rather stable at 1.1794, with improved US consumer
sentiment providing little support to the dollar.

The EUR/GBP rate slipped to 0.8679 after the BoE kept rates at 3.75% but
delivered a more dovish-than-expected vote split, reinforcing expectations of
further easing. The ECB also left policy unchanged, with President Lagarde
signalling rates are likely to remain steady.