The European Union’s Emissions Trading System (EU ETS) saw the December 2023 EUA benchmark contract break above the 100 euro mark for the first time last week, climbing further into three-digit territory on Wednesday and Friday. Tuesday’s close saw the EUA finish at exactly 100 EUR, though Friday’s attempt to remain above the psychological marker was unsuccessful — the carbon certificates ending the week’s trading at 97,30 EUR still up more than 1,00% from the previous week.
It is yet to be determined whether the recent sideways-up trend will prove to be sustainable, or if profits will be made through speculators selling at the breaking of the support line. Plant operators might find this to be a good moment to make compliance purchases. Historically, prices have been bullish up until the compliance deadline.