EUA Carbon Price – April 3, 2025
The price of EUA carbon allowances opened today, on thursday, April 3rd, at €67.69 on the ICE ECX market, reaching a strong support level. After hitting a low of €66.40 on Monday, March 31st, there are signs the market may continue to rise in the coming period.
Carbon Expert analysts note that although the price declined for six consecutive weeks, recent developments suggest a possible medium-term rebound to 70,50€. The price becomes bullish at 74€
EU Delays 2040 Climate Targets
The European Commission has decided to postpone the presentation of its legislative proposal for the 2040 emissions reduction target, which was meant to complement the EU’s Net Zero goal by 2050. The proposed target—a 90% reduction in emissions compared to 1990 levels—was set to become one of the world’s most ambitious, reinforcing the EU’s role as a global climate leader.
However, the political landscape in 2025—shaped by farmer protests, fears of an anti-green backlash, and the upcoming European elections—has forced Brussels to adopt a more cautious stance. Several Central and Eastern European member states, along with the heavy industry sector, have called for a reassessment of climate ambitions, citing:
- high transition costs;
- unfair international competition;
- risks of industrial relocation (carbon leakage).
While the European Green Deal remains in effect, the delay in 2040 targets raises concerns that the EU may be weakening its climate commitments under domestic political pressure. Nevertheless, many analysts believe the final 2040 target will still be ambitious—around 85%.
European Airlines: Between Climate Demands and Economic Realities
In an unprecedented joint initiative, major players in European aviation—including Lufthansa, Air France-KLM, Ryanair, and IAG Group—have formally appealed to the European Commission for a relaxation of environmental regulations affecting the sector. Their key demands include:
- A revision of the ETS Directive for aviation, which requires the purchase of carbon allowances (EUAs) for intra-European flights. Airlines argue this reduces competitiveness versus non-EU carriers not subject to the same rules.
- Postponement or flexibilization of the ReFuelEU Regulation, which mandates the use of sustainable aviation fuels (SAF). Airlines claim that current infrastructure is insufficient and SAF costs 3–5 times more than conventional kerosene.
- Access to EU funding dedicated to green transition, to support investments in new aircraft, SAF, and fleet modernization.
Industry executives warned that maintaining current rules without additional financial support could lead to higher ticket prices, fewer routes, and job losses. In response, the European Commission reiterated that climate neutrality by 2050 includes all sectors—aviation included—and that the transport sector must contribute its fair share to climate efforts.
This standoff highlights the core dilemma of the transition: how do we balance decarbonization demands with the economic and social realities of Europe in 2025?
Source: Financial Times, Reuters, European Commission