Page 4 - 2025 HEG Daily Energy Market Report

CARBON (€/T)
WED THU VAR D-1 VAR W-1 AVG. MAX MIN
17/12 18/12 FROM THE BEGINNING OF THIS YEAR
CO2 EUA DEC 2026 86.80 86.48 -0.32 0.28 76.49 87.36 62.54
CO2 EUA DEC 2027 89.44 89.13 -0.31 0.2 78.80 90.02 64.54
CO2 EUA DEC 2028 92.46 92.15 -0.31 0.12 81.40 93.05 66.86
UK ETS DEC 26 EUR 69.11 73.96 4.85 7.01 60.58 73.96 39.48
UK ETS DEC 27 EUR 72.11 77.12 5.01 7.04 63.40 77.12 42.14
UK ETS DEC 28 EUR 75.24 80.61 5.37 - 76.61 80.61 73.98

European carbon prices extended losses on Thursday as fresh selling pressure
weighed on the market, pushing the EUAs expiring in Dec-2026 down by 0.4%
to end at 86.48 EUR/tonne. However, losses were limited by the usual year-end
pause in auction supply.

CO2 EUA

EXCHANGE RATES
WED THU VAR D-1 VAR W-1 AVG. MAX MIN
17/12 18/12 FROM THE BEGINNING OF THIS YEAR
RATE EUR/USD 1.1722 1.1719 -0.0003 0.0005 1.1286 1.1837 1.0198
RATE EUR/GBP 0.8785 0.8746 -0.0039 -0.0005 0.8564 0.8846 0.8253
RATE GBP/EUR 1.1383 1.1434 0.0051 0.0007 1.1681 1.2117 1.1305

The EUR/USD pair held rather steady at 1.1719 on Thursday, as markets
digested mild US inflation and improved jobless claims, supporting expectations
of a cautious Fed in 2026. The ECB kept its rate unchanged at 2%, with
Lagarde signalling a meeting-by-meeting approach and suggesting the easing
cycle may be over.

Meanwhile, the EUR/GBP rate slipped by 0.4% to 0.8746, after the Bank of
England cut its Bank Rate by 25 basis points to 3.75%, with four policymakers
dissenting and Governor Bailey indicating a dovish bias. The BoE noted that
inflation has receded and further easing will depend on the evolving outlook.