EU governments back retaining more carbon allowances in reserve

Sep 23, 3:42 PM UTC

Council position would suspend allowance cancellations through 2030

EU governments agreed to retain surplus carbon allowances in the Emissions Trading System’s market stability reserve instead of cancelling amounts above the current 400-million threshold through 2030. The larger reserve could supply allowances if carbon prices rise sharply; existing rules permit a 75-million-allowance release when prices more than double. From 2031, the Council position would initially cancel holdings above 800 million allowances, with the threshold declining later. The change is not final and requires negotiations with the European Parliament before it can take effect.

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