EU agrees to tighter price controls for new carbon market

The European Union has agreed to tighter measures to control prices in its new carbon market, the European Parliament said early Thursday, in response to concerns from governments that the emissions-cutting initiative could increase the cost of fuel. Negotiators from EU countries and the European Parliament agreed that if the cost of permits in the new carbon market exceeds €45 ($52) per metric ton of_CO2, 40 million permits from a “stability reserve” will be released to the market to regulate supply. compared to the 20 million previously planned.

The reserve will be able to be activated twice a year, based on changes agreed on Wednesday night, meaning a total of 80 million additional permits can be added each year.

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