EU Agrees Stronger Carbon Market Controls

The European Union>>> has agreed on stronger measures to control prices in its new carbon market, known as ETS2, which will impose a price on CO2 emissions from heating and transport fuels starting in 2028. Negotiators from EU countries and the European Union — European Parliament>>> decided that if the cost of permits exceeds 45 euros per metric ton of CO2, 40 million permits will be released from a 'stability reserve' to regulate supply, double the previous amount. This reserve can be triggered twice annually, adding up to 80 million extra permits each year, and will be extended beyond 2030. These stricter measures address concerns from governments, including France>>> and the Czech Republic>>>, that the initiative could increase fuel bills and provoke opposition to climate policies. The proceeds from ETS2 will be used to help citizens with bills, electric car purchases, and home renovations. The agreement requires endorsement from the European Union — European Parliament>>> and EU member states before taking effect.