Page 108 - 2025 HEG Daily Energy Market Report

CARBON (€/T)
WED THU VAR D-1 VAR W-1 AVG. MAX MIN
4/2 5/2 FROM THE BEGINNING OF THIS YEAR
CO2 EUA DEC 2026 82.92 78.20 -4.72 -5.78 87.13 92.24 78.20
CO2 EUA DEC 2027 85.22 80.38 -4.84 -5.95 89.60 94.80 80.38
CO2 EUA DEC 2028 87.82 82.83 -4.99 -6.12 92.40 97.73 82.83
CO2 EUA DEC 2029 90.84 85.68 -5.16 -6.32 95.62 101.04 85.68
UK ETS DEC 26 EUR 72.17 65.99 -6.18 -9.2 77.39 84.02 65.99
UK ETS DEC 27 EUR 75.32 68.86 -6.46 -9.61 80.73 87.61 68.86
UK ETS DEC 28 EUR 79.01 72.25 -6.76 -10.03 84.48 91.46 72.25

European carbon prices dropped on Thursday as speculative reports triggered
heavy selling, suggesting the EU may scale back post-2030 ETS ambitions to
ease costs for industry. Consequently, the EUAs expiring in Dec-2026 slumped
by 5.7% to 78.20 EUR/tonne, or a 4-month low.

CO2 EUA

EXCHANGE RATES
WED THU VAR D-1 VAR W-1 AVG. MAX MIN
4/2 5/2 FROM THE BEGINNING OF THIS YEAR
RATE EUR/USD 1.1820 1.1798 -0.0022 -0.017 1.1744 1.1974 1.1617
RATE EUR/GBP 0.8616 0.8691 0.0075 0.0029 0.8680 0.8744 0.8616
RATE GBP/EUR 1.1606 1.1506 -0.01 -0.0039 1.1521 1.1606 1.1436

The EUR/USD pair edged 0.2% lower at 1.1798 amid a risk-off tone following a
quiet ECB decision and softer US labour data. A broad equity sell-off boosted
demand for the dollar, while weaker hiring and rising jobless claims lifted
expectations for Fed rate cuts, with markets pricing around 60 bp of easing.

The EUR/GBP rate added nearly 1% to 0.8691 as the pound weakened after a
dovish Bank of England hold. The BoE kept rates at 3.75%, but an
unexpectedly split vote and softer inflation risks signalled scope for future
easing.