The 27 support changes to contain rallies in the new carbon market

The approved changes are aimed at containing possible spikes in the new carbon market by releasing a greater number of allowances if the price of CO2 exceeds 45 euros per tonne.

The member states of the European Union have supported adjustments to strengthen the control mechanisms of the new European emissions trading system, which will begin to be applied in 2028, with the aim of avoiding increases in the cost of CO2 and providing greater predictability in its first years of operation. The ambassadors of the 27 approved the Council’s position on a modification of the system’s market stability reserve, known as ETS2, which will impose a price on emissions from fuels used in buildings, road transport and other sectors. After this support, the text will now move on to the negotiation phase with the European Parliament, which will have to establish its position before both institutions can reach a definitive agreement on the reform. The approved changes are aimed at containing possible spikes in the new carbon market by releasing a greater number of allowances if the price of CO2 exceeds 45 euros per tonne – at 2020 prices – which could allow up to an additional 80 million euros to be incorporated per year.

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