Dear Sirs and Madams,
The EU Commission plans to extend the CO2 border tax CBAM (Carbon Borderline Adjustment Mechanism) to 180 additional products from third countries from 2026, primarily to machinery and equipment with a high steel or aluminium content.
The intention behind this is to protect European industry and prevent relocation abroad (carbon leakage).
In addition, a decarbonisation fund is to support affected companies with CO2 costs, financed by revenues from CBAM certificates and EU funds.
Furthermore, the use of aluminium and steel scrap to reduce emissions will also be taken into account in future. The CBAM will gradually replace the free CO2 certificates for energy-intensive companies in the EU by 2034.
Another effect of the CBAM is that more and more third countries are establishing or expanding their own emissions trading systems in order to price greenhouse gas emissions in their own countries, so that less CO2 levies are paid into the European CBAM and remain in their own treasuries.
The costs of CO2 pricing under the CBAM are based on the EU ETS1, and its prices have been developing in a clearly visible upward channel since the summer, currently ranging between approximately €85.50 and €89.00 in the December 2026 benchmark future and moving slowly but steadily upwards.
Of course, there is always the possibility that the price will break out of a trend channel, but there are currently no technical or fundamental reasons to suggest this will happen.
For this reason, it could be of interest to compliance buyers to partially order for their own CO2 portfolio below the EUR 90 mark.
In this week, which is shortened by the two Christmas holidays, trading on the EEX will end at 13:00 on 24 December 2025 and the last settlement on the ICE ENDEX will be at 14:00.
As usual, we are available for you until the close of trading and wish you a relaxing holiday season.
| Instrument | 12/12/25 | 19/12/25 | Change |
| EUA (December-26-Future) | 86.04 EUR | 87.05 EUR | +1.01 EUR |
| EUA2 (December-28-Future) | 73.81 EUR | 74.74 EUR | +0.93 EUR |
| nEZ25 (national Emission Allowances (D)) | 55.00 EUR | 55.00 EUR | +0.00 EUR |
| UKA (December-26-Future (UK)) | 58.30 GBP | 65.53 GBP | +7.23 GBP |
| UK Natural Gas (December-26-Future) | 72.28 GBP | 72.08 GBP | -0.20 GBP |
| ICE Brent Crude Oil (December-26-Future) | 60.66 USD | 59.90 USD | -0.76 USD |
| EURO (Forex) | 1.1741 USD | 1.1709 USD | -0.0032 USD |
(EUA, EUA2, UKA, Natural Gas, Crude Oil and Euro Currency shows day-end-exchange quotes of the benchmark contract. This market information has just an informational character and are no advice or offer to trade emission allowances or their futures and options. If you want to unsubscribe, please reply to this mail.)
Please call our international carbon desk if any further questions exist: +49.2831.1348220 or book here a call with one of our specialists.
With kind regards,
Your Advantag – Team