Carbon Markets Weekly May 4-8

European carbon market last week was heavily driven by the trilogue negotiations on the Market Stability Reserve.

Monday’s and Tuesday’s session was driven by bullish speculation on the outcome of the meeting between the Parliament and the Council, which delivered a compromise including a 2019 start date and a transfer of unallocated and backloaded allowances to the reserve. Traders started to take profit on Wednesday, triggering bearishness in the second half of the week. EUAs prices showed some stabilization on Friday.

The EUA Dec-15 contract closed the week almost flat at €7.57/t, gaining €0.05/t (+0.66 percent) respect to the previous Friday’s finish.

In the UN-backed CDM market, the front-year CERs closed on Friday at €0.45/t, down €0.04/t (-8.16 percent) week-on-week.

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