EU
The European Union Allowance (EUA) prices for December averaged at EUR 67.28 per tonne, down 0.36% from the previous month. Prices struggled to break the EUR 70 threshold due to reduced emissions in the power sector, an oversupplied market, and declining industrial demand as Europe’s economic growth slowed. Increased auction volumes and uncertainty over policy changes further constrained price increases.
However, improved energy market stability and policy support provided some resilience toward the end of the month. Looking ahead, EUA prices are anticipated to hover between EUR 65 and EUR 70 per tonne in January 2025, as winter energy demand competes with economic sluggishness.
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China
The China Emission Allowance (CEA) prices for December averaged at RMB 99.95 per tonne, down 4.46% from the previous month. The decline was driven by weaker demand, as many companies had already secured allowances, and a sell-off triggered by government restrictions on unused allowance carryovers. Prices dipped below RMB 100 per tonne by late December.
As the new compliance period begins in January 2025, demand is expected to recover, though the extent of the rebound will depend on how quickly market participants adapt to the updated regulations and whether supportive policies can drive prices back above RMB 100 per tonne.