EU carbon prices plunge as leaders weigh market reforms
Carbon prices hit a multi-month low as leaders suggest market reforms to aid competitiveness. The shift impacted energy shares and sparked debate over green policy.
Insights:
European benchmark carbon prices plunged to their lowest levels since August 2025 on Friday, February 13, 2026, after German Chancellor Friedrich Merz suggested that Europe’s carbon market should be revised or even postponed. Speaking at an EU competitiveness summit, Merz’s remarks triggered a sharp sell-off in the European Union Emissions Trading System (EU ETS), with prices dropping approximately 7% on Thursday and nearly 20% since the start of the year. The comments by the leader of Germany 
DE come as other European leaders at the summit also voiced support for market intervention.
DE come as other European leaders at the summit also voiced support for market intervention.
