The European Securities and Markets Authority has published its annual market report on EU carbon markets, analysing 2024 developments in the primary and secondary markets for EU emission allowances. ESMA did not identify any significant issues affecting the integrity or transparency of these markets. Emission allowance auctions and secondary-market trading dynamics remained largely unchanged, with the market organised to facilitate the flow of allowances from financial intermediaries to non-financial firms with compliance obligations. Analysis of non-financial sector trading and derivatives positions also indicates that the market supports different acquisition strategies, reflecting varying participant needs and capabilities. The report is produced annually as part of ESMA’s monitoring mandate under the EU Emissions Trading System Directive.