Carbon Markets Weekly June 15-19

European carbon market slightly retreated last week, correcting some of the upside seen during the first half of June amid a multitude of minor drivers.

Signals from the policy front and technical indicators remain rather neutral and analysts said traders are reducing their activity as the market is slowly entering its summer lull. In the absence of significant carbon-related news, the Dec-15 price will likely be inspired by any development on the macro side, Reuters Point Carbon observed.

The EUA Dec-15 contract closed the week almost flat at €7.44/t, down €0.2/t (-2.62 percent) respect to the previous Friday’s finish.

The MSR process is likely to be one of the few summer events posed to send stronger signals to the EU market. According to Reuters Point Carbon, the EU Parliament plenary is set to vote on 7 July. The rubberstamping of the deal by member states will happen during a Council meeting, probably not until mid-September. Analysts are confident that both institutions will adopt the decision as agreed during the trilogue negotiations.

In the UN-backed CDM market, the front-year CERs closed on Friday at €0.39/t, down €0.01/t (-2.50 percent) week-on-week.

(Market analysis and data by Thompson Reuters PointCarbon, our data visualization using Tableau Public)