EU Nations Reach Deal to Start Carbon-Market Reserve in 2021
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European Union member states agreed on a compromise to seek the start of automatic supply cuts in the world’s biggest carbon market in 2021, giving up plans to push for an accelerated introduction of the fix.
The deal, approved today in Brussels, allows EU governments to begin on March 30 negotiations with the European Parliament about the final version of the draft law on a market stability reserve, said Latvia, the holder of the bloc’s rotating presidency. The reserve would ease a glut of permits that has pushed emission allowances down about 75 percent since 2008 to levels that fail to deter industry from burning coal, the most-polluting fossil fuel.