European Union countries backed changes on Wednesday that would keep more spare carbon permits available within the bloc’s emissions trading system, aiming to reduce the risk of sharp price spikes.
Reuters, citing EU diplomats and a document, reported that member-state ambassadors agreed in a closed-door meeting to stop permanently removing some excess CO2 permits from the market under the current mechanism. Keeping more permits in reserve would give the system more flexibility when prices rise rapidly.
The European Commission first proposed the change in April, and the issue has gained urgency amid high energy costs. Governments including Poland and Italy have pushed for measures that reduce the contribution of carbon prices to electricity costs.
The agreement is not yet final law. It still requires further legislative steps and negotiations with the European Parliament. The emissions trading system remains a central part of the EU’s climate policy, so the debate involves balancing price stability with the bloc’s emissions-reduction goals.