Page 32 - 2025 HEG Daily Energy Market Report

CARBON (€/T)
TUE WED VAR D-1 VAR W-1 AVG. MAX MIN
3/3 4/3 FROM THE BEGINNING OF THIS YEAR
CO2 EUA DEC 2026 73.33 70.76 -2.57 -1.82 81.03 92.24 69.18
CO2 EUA DEC 2027 75.50 72.83 -2.67 -1.76 83.31 94.80 71.09
CO2 EUA DEC 2028 77.87 75.09 -2.78 -1.7 85.89 97.73 73.28
CO2 EUA DEC 2029 80.76 77.70 -3.06 -1.67 88.86 101.04 75.83
UK ETS DEC 26 EUR 52.82 50.36 -2.46 -2.28 67.60 84.02 50.36
UK ETS DEC 27 EUR 55.24 52.58 -2.66 -2.36 70.50 87.61 52.58
UK ETS DEC 28 EUR 57.70 55.05 -2.65 -2.47 73.79 91.46 55.05

European carbon markets retreated on Wednesday, pressured by a 5.6 m
tonne reduction in investment funds’ net long positions in EUAs, which now
stand at 63.3 m tonnes. Lower gas prices, improving gas-to-coal economics,
added further downward momentum. As a result, the EUAs expiring in Dec-
2026 declined by 3.5% to 70.76 EUR/tonne.

CO2 EUA

EXCHANGE RATES

TUE WED VAR D-1 VAR W-1 AVG. MAX MIN
3/3 4/3 FROM THE BEGINNING OF THIS YEAR
RATE EUR/USD 1.1606 1.1649 0.0043 -0.0135 1.1769 1.1974 1.1606
RATE EUR/GBP 0.8717 0.8705 -0.0012 -0.0009 0.8696 0.8763 0.8616
RATE GBP/EUR 1.1472 1.1488 0.0016 0.0012 1.1499 1.1606 1.1412

The EUR/USD pair edged 0.4% higher at 1.1649 supported by stronger-than-
expected Eurozone data. January PPI increased 0.7% MoM, rebounding from
-0.3% in December, while the unemployment rate eased to 6.1%.

In contrast, the EUR/GBP rate slipped to 0.8705 as markets scaled back bets
on a Bank of England rate cut in March, although Sterling gains remain muted
amid ongoing political uncertainty over Prime Minister Keir Starmer’s
leadership.