Page 96 - 2025 HEG Daily Energy Market Report

CARBON (€/T)
MON TUE VAR D-1 VAR W-1 AVG. MAX MIN
9/2 10/2 FROM THE BEGINNING OF THIS YEAR
CO2 EUA DEC 2026 81.35 78.86 -2.49 -4.25 86.33 92.24 78.20
CO2 EUA DEC 2027 83.55 81.01 -2.54 -4.44 88.77 94.80 80.38
CO2 EUA DEC 2028 86.06 83.44 -2.62 -4.66 91.53 97.73 82.83
CO2 EUA DEC 2029 88.94 86.32 -2.62 -4.8 94.71 101.04 85.68
UK ETS DEC 26 EUR 66.42 59.63 -6.79 -13.23 75.93 84.02 59.63
UK ETS DEC 27 EUR 69.26 62.22 -7.04 -13.8 79.21 87.61 62.22
UK ETS DEC 28 EUR 72.52 65.33 -7.19 -14.38 82.91 91.46 65.33

Reports, yet to be confirmed, suggesting adjustments to the EU carbon
framework unsettled the market on Tuesday, as traders grew concerned that
reforms could slow the pace of emissions reductions. Consequently, European
carbon prices moved lower, with the EUAs expiring in Dec-2026 decreasing by
3% to 78.86 EUR/tonne.

CO2 EUA

EXCHANGE RATES

MON TUE VAR D-1 VAR W-1 AVG. MAX MIN
9/2 10/2 FROM THE BEGINNING OF THIS YEAR
RATE EUR/USD 1.1886 1.1894 0.0008 0.0093 1.1755 1.1974 1.1617
RATE EUR/GBP 0.8701 0.8695 -0.0006 0.0072 0.8680 0.8744 0.8616
RATE GBP/EUR 1.1493 1.1501 0.0008 -0.0096 1.1520 1.1606 1.1436

The EUR/USD pair edged up to 1.1894 as softer-than-expected US Retail
Sales weighed on the Dollar. December Retail Sales were flat, missing the
0.4% forecast, with yearly growth easing to 2.4%. The GDP-linked control
group fell 0.1%, and sales excluding autos showed no growth, missing the
0.3% forecast.

The EUR/GBP rate was little changed, down at 0.8695. The Euro lacks
direction as ECB President Lagarde reaffirmed inflation should return to 2%,
supporting stable rates. Despite UK political uncertainty over PM Starmer’s
controversial ambassadorial appointment, Sterling held firm, keeping the pair
slightly lower.