EU
The European Union Allowance (EUA) prices for May averaged at EUR 70.38 per tonne, up 9.26% from the previous month. After three consecutive months of decline, the EU carbon market showed early signs of recovery, with prices peaking at EUR 72.58 per tonne mid-month.
The rebound was primarily driven by a rise in natural gas prices, which boosted demand for carbon allowances. In addition, warmer and drier-than-usual spring weather in parts of Europe led to increased reliance on thermal power generation, further elevating carbon emissions and demand for allowances.
Although the U.S. decision to delay tariffs on EU imports helped ease near-term trade risks, its direct impact on EUA prices remained limited. Looking ahead to June, prices are expected to remain above EUR 70 per tonne amid higher seasonal energy demand. However, downward pressure may emerge if allowance supply expands.
Related News Carbon price Carbon reduce Net zero
China
The China Emission Allowance (CEA) prices for May averaged at RMB 70.08 per tonne, down 13.09% from the previous month, setting a new 12-month low. By month-end, prices had dropped below the RMB 70 threshold.
The price slump was primarily driven by a widening supply-demand imbalance, as rapid growth in new energy capacity led to an oversupply of carbon allowances. During the non-compliance period, trading activity also declined, with 14 sessions recording zero transactions, reflecting weakening market sentiment.
Without policy intervention or structural market reforms, CEA prices are expected to remain under downward pressure in the short term.