EU Carbon Prices Rise to 7-Week High
2026-04-01 10:51
By
Agna Gabriel
1 min. read
EU carbon permit prices rose to €74.8 per ton, the highest level in seven weeks, as the European Commission signaled a more measured approach to reforming the bloc’s emissions trading system, easing fears of aggressive intervention.
Prices were supported after Brussels proposed adjustments to the Market Stability Reserve that would scrap the invalidation of certain permits, effectively allowing more allowances to be retained for potential future use while leaving key supply controls unchanged.
The move suggests policymakers aim to limit volatility without immediately flooding the market with additional supply, a less bearish outcome than some traders had expected.
Carbon prices have also been underpinned by broader energy market tensions linked to the Middle East conflict, which has pushed energy costs higher and sharpened concerns over Europe’s industrial competitiveness, reinforcing the importance of carbon pricing in the region’s energy mix.