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Falling Allowance Supply To Tighten EU Carbon Market

Source: SeekingAlpha

2025-12-09 09:11:00 ET

By Warren Patterson, Head of Commodities Strategy

Allowance supply to fall

Allowances under the EU ETS are set to fall significantly in 2026, although, if we look at the current auction calendar for 2026, it does not reflect this, with auctioned volumes set to fall by less than 1% YoY. However, the auction calendar for 2026 does not take into consideration several adjustments that we will see....

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Falling Allowance Supply To Tighten EU Carbon Market
Kraneshares California Carbon Allowance Strategy ETF

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