12.02.202608:58:12UTC+00EU Carbon Prices Hit 5-Month Low on German Signals

EU carbon permit prices have fallen to €74.65 per ton, a five-month low, after Germany signalled it is open to revising or delaying the bloc’s emissions trading system, fuelling concerns about future demand for allowances. German Chancellor Friedrich Merz said the scheme should be reassessed if it fails to reduce emissions while supporting industry’s shift to cleaner production, heightening expectations of policy changes. His remarks underscore mounting pressure from Europe’s largest economy to ease the impact of climate regulations on industrial competitiveness. Last year, the EU had already agreed to postpone the launch of a separate carbon market for buildings and road transport amid worries over high energy costs and public opposition. Possible adjustments now under discussion include slowing the phaseout of free allowances, modifying supply-control mechanisms, or introducing greater flexibility for energy‑intensive sectors.