EMISSIONS: EU End-Of-Day Carbon Summary: EUAs/UKAs Track Weekly Losses

{EU}{2Q}EUAs and UKAs Dec25 are on track for weekly losses of near 3% and 6% respectively, nearing one- and two-month lows, as bearish sentiment driven by weaker TTF prices and increased short activities weighs on both carbon market, without a clear fundamental shift in carbon.

• EUA DEC 25 up 0.7% at 70.89 EUR/t CO2e
• UKA DEC 25 up 1.41% at 48.32 GBP/t CO2e
• TTF Gas JUL 25 down 3.3% at 32.89 EUR/MWh
• NBP Gas JUL 25 down 3.9% at 76.05 GBp/therm
• Estoxx 50 up 1% at 5249.52
• Correlation between EUA/TTF for 30-day period at 0.21.
• Correlation between EUA/STOXX for 30-day period has tightened to a one-week high at 0.31.
• Correlation between EUA/UKA for 30-day period has tightened to a one-month high at 0.49.
• Correlation between EUA/UKA for 30-day period has tightened to a one-month high at 0.44.
• The EUA Dec25 premium to the UK equivalent remained at a similar level at €14.25/t CO2e.
• TTF front month is extending its downward trend to the lowest since early May after the EU this week agreed to give member states more flexibility with their gas storage targets and amid healthy injections in recent days.
• The latest Germany ETS CAP3 auction cleared at €69.4/ton CO2e, down 3.57% compared with the previous Germany auction at €71.97/ton CO2e according to EEX.
• ICE EUAs DEC25 options contracts open interest has grown marginally by 1.14% this week, up from 284k contracts to 287k, with put/call open interest ratio rose from 0.77 to 0.78.
• EUA Auction Calendar Week Ahead (Calendar Week 27) - A total of 11.3mn EUAs will be auctioned next week, with four auction sessions will be held. The latest Germany ETS CAP3 auction cleared at €69.4/ton CO2e, remaining below both the 10 and 50-day moving averages and trending down toward the 100-day moving average.
• UK government will initially adopt a “one-in, one-out” approach for carbon removals integration in UK ETS, a senior official told Carbon Pulse.