EU
The European Union Allowance (EUA) prices for March averaged at EUR 68.69 per tonne, down 9.15% from the previous month. Throughout the month, EU carbon prices exhibited a downward trajectory. Despite reaching a short-term high of EUR 82 per tonne earlier in the year, prices dropped to as low as €65 per tonne by the end of the third quarter.
The decline was primarily attributed to global economic slowdown, volatile natural gas prices, and market expectations of tighter future allowance supply. Weakened industrial output and subdued demand for allowances further suppressed EUA valuations.
Looking ahead, EUA prices are expected to remain volatile into April, amid rising geopolitical trade tensions and EU indications of potential adjustments to the Carbon Border Adjustment Mechanism (CBAM) timeline.
Related News Carbon price Carbon reduce Net zero
China
The China Emission Allowance (CEA) prices for March averaged at RMB 88.13 per tonne, down 3.64% from the previous month. This marks the fifth consecutive month of price decline, with March prices consistently remaining below RMB 90 per tonne.
During the month, the Ministry of Ecology and Environment formally announced the expansion of the national carbon market, aiming to cover over 60% of the country’s total emissions. However, the initial allocation of allowances appears relatively generous, exerting minimal upward pressure on prices.
In addition, the Chinese government’s enhanced focus on coal supply security, announced concurrently with substantial investments in renewable energy, introduced mixed policy signals to the market.
Considering compliance pressure from newly covered entities has yet to materialize, the downward trend in CEA prices is expected to persist in the near term.