The EU agrees to retain more CO2 emission permits to avoid sharp price increases for industry

The Council of the European Union and the European Parliament have reached a provisional agreement to modify the rules of the European carbon dioxide emissions trading market, known as the ETS. The measure allows for more emission permits to be retained in order to contain potential sudden price spikes and prevent severe cost increases for industry.

This provisional agreement serves to flexibilize the EU's emissions market while Brussels simultaneously prepares a broader reform of the system. The primary stated objective of preserving additional pollution permits is to protect the competitiveness of European industries against steep price volatility.