EU sells spot carbon permits at 68.73 EUR/ton on EEX

EU sells spot carbon permits at 68.73 EUR/ton on EEX

The European Union (EU) sold 3.246 million spot EU carbon permits on the European Energy Exchange (EEX) at 68.73 euros per tonne each on July 17, 2025, according to Reuters [1].

This auction marks a significant development in the EU's ongoing efforts to reduce greenhouse gas emissions. The EU Emissions Trading System (EU ETS) is a cornerstone of the bloc's climate policy, aiming to limit emissions by 55% by 2030 compared to 1990 levels. The recent sale of carbon permits underscores the EU's commitment to meeting these ambitious targets.

The auction price of 68.73 euros per tonne is slightly higher than the previous month's average of 69.05 euros per tonne, indicating a modest increase in demand for carbon permits. This price level is consistent with the broader trend observed in the EU ETS, which has seen prices fluctuate between 60 and 70 euros per tonne in recent years.

The EU ETS 2, set to complement the existing EU ETS 1 system, is expected to introduce an EU-wide and annually decreasing emissions cap starting from 2027. This cap is designed to further reduce the supply of carbon permits, potentially driving up prices and incentivizing more aggressive emissions reduction efforts.

The price of carbon permits is a critical indicator for companies operating in sectors covered by the EU ETS. The cost of compliance with the system can have significant implications for business operations and profitability. Companies must carefully monitor market trends and develop strategies to manage their exposure to price volatility.

For investors and financial professionals, the recent auction results provide valuable insights into the current state of the EU carbon market. As the EU ETS 2 approaches, it is essential to stay informed about market developments and the potential impact on various sectors of the economy.

References:
[1] Reuters. (2025, July 17). European Union auctions 3.246 million spot EU carbon permits at 70.05 euros per tonne each on Thursday. Retrieved from https://www.tradingview.com/news/reuters.com,2025-07-17:newsml_APN3LPPGH:0-update-1-european-union-auctions-3-246-mln-spot-carbon-permits-at-70-05-eur-t/
[2] Illuminem. (n.d.). The EU ETS 2 - A Guide for Companies. Retrieved from https://illuminem.com/illuminemvoices/the-eu-ets-2-a-guide-for-companies