EUAs closed out May with a solid +5.8% gain, ending at EUR 70.41 per tonne — a firm bounce from the May 1st low at EUR 66.24. Carbon markets were driven in May more by tweets than fundamentals — back-and-forth tariff news headlines about a peace deal in Ukraine and its impact on natural gas prices, and geopolitical noise added to volatility without conviction. Structurally, reduced auction volumes offered a floor, but follow-through dried up as prices approached resistance. Liquidity was soft. Auction volumes increase in June; renewables tend to displace fossil fuel generation, limiting the immediate needs of utilities — a combination that typically caps the upside of EUAs.