STORY
The Council and the European Parliament have reached a provisional agreement on changes to the market stability reserve for the EU emissions trading system covering buildings, road transport and additional sectors. The agreement is intended to make the new ETS2 carbon market more predictable before it becomes fully operational in 2028.
Under the agreement, the number of allowances that can be released when the carbon price exceeds EUR45 per tonne will be doubled from 20 million to 40 million. The market stability reserve will also continue beyond 2030, with the EU arguing that the changes will reduce volatility and improve confidence for households, businesses and member states.
The proposal still needs formal endorsement by the Council and Parliament before legal-linguistic checks and final adoption. ETS2 is part of the EU’s wider climate framework and applies to fuel suppliers in sectors including road transport and buildings.