European carbon markets kept building on week-long momentum as multiple headwinds converged to push emissions permits higher. The culprit? Skyrocketing natural gas prices coupled with a tighter nuclear power generation pipeline—and that's before factoring in forecasts predicting a cold snap that'll likely spike heating demand across the continent.

When you stack up energy scarcity like that, the math gets simple. Utilities scramble for whatever power they can source, fossil fuel plants fire up to fill gaps, and suddenly demand for emissions allowances goes through the roof. It's a classic squeeze play in the carbon market—supply tightens, costs climb, and traders watching the broader commodity complex take notice.

The backdrop matters too. Global energy volatility ripples across asset classes, and investors tracking everything from traditional commodities to crypto markets are paying attention to how these macro shifts reshape trading dynamics.