The European Union Allowance (EUA) prices for November averaged at EUR 77.04 per tonne, down 5.6% from the previous month. The Europe carbon market experienced continuous price declines in November. Due to limited demand and the stagnant economy in the Eurozone, most buyers remained bearish. Coupled with ongoing pressure from sellers, EUA prices hit their lowest point of the year, reaching only EUR 75.1/tonne towards the end of the month, with the auction market also quite sluggish. The downward trend then came to a halt as energy demand rose following the arrival of the cold season. With only one month left until the year-end, a reduction in auction supply is expected to cause a slight increase in EUA prices, although the impact is likely to be limited. The stagnant situation of prices may continue into 2024. It is worth noting that changes in compliance deadlines in the EU emissions trading system (ETS) may lead to seasonal variations in the market, altering the timing of price increases associated with compliance demand.
The China Emission Allowance (CEA) prices for November averaged at RMB 73.44 per tonne, down 8.5% from the previous month. After several months of reaching record highs due to the Chinese government's intervention in the market, CEA prices declined in November after hitting new highs for several months and stabilized at around RMB 72 per tonne, marking the low point of the past two months. With the year-end approaching, demand remained robust, keeping trading volume relatively stable. Overall, despite the continuous price drop in the first half of the month, CEA prices stabilized towards the end, showing signs of a halt in the decline. It is expected that until the compliance deadline at the end of the year, CEA prices will fluctuate between RMB 70 and RMB 80 per tonne, with little room for significant increases or decreases. It remains to be seen whether such active trading will continue after the compliance period.