EU Carbon Extends Rally to Two-Year High as Bullish Bets Build

European Union carbon futures extended a rally to the highest in more than two years as funds remain bullish due to the outlook for tighter supplies, adding to costs for generating electricity.

Benchmark carbon permits climbed as much as 3.5% to the highest since August 2023. Carbon has advanced in recent weeks, despite falling gas costs, as speculators added to bets on even higher prices, with many analysts also expecting further gains.