Amid market turbulence, EU carbon prices climb 7% in May, from €67.0/t to €71.6/t. According to ICE, the December 2025 EUA contract started the month at €67/t and ended the month at €73.4/t on May 15.

Prices had significant volatility from May 19 to May 23. The contract’s price increased from €70.42/t /t on May 19 to €73.18/t /t on May 20. The declaration by Donald Trump, the then US president, of a 50% tax on EU imports beginning June 1 significantly impacted the commodities and energy markets, causing them to drop to €71.56/t by May 23. The contract’s price on May 29 was €70.94/t.

On May 19, UKA emissions permits (December 2025 contract) were £52.43/t. The following day, they increased to £55/t (+5%), then began declining. Analysts at S&P Global predict that UK carbon prices will drop in June and level off at about £50/t in Q3 2025.

Integration Talks Between the EU and the UK ETS

Carbon prices reacted to the announcement in mid-May that the EU and the UK had decided to work toward integrating their carbon markets. The statement came after a more comprehensive deal to rebalance relations after Brexit. This ETS alignment may include electricity production, industry, industrial heat, marine transportation, and aviation. It attempts to exclude commodities originating in both jurisdictions from CBAM duties.

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ICE Launches CO2 Futures for ETS2

ICE’s May 6 futures agreements focused on buildings and road transport for the EU’s planned ETS2 system. Small amounts of the initial contracts traded at €73.57/t, which was somewhat higher than the anticipated goal. In 2027, ETS2 is expected to go online. ETS2 futures will be traded on the European Energy Exchange (EEX) starting in July. As market mechanisms expanded beyond traditional sectors, the EU carbon prices climb 7% in May.

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