EU Carbon Permits Jump After Ministers Agree on Market Overhaul
- Deal includes option to cancel some allowances in reserve
- Plan allows removal of permits from market at faster pace
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European Union emission allowances climbed to the highest in almost two months and trading surged after environment ministers agreed on a carbon-market overhaul aimed at reducing a glut and boosting prices from 2019.
The proposal includes doubling the rate at which a mooted reserve would absorb surplus emission allowances from the market, according to the accord struck late Tuesday in Brussels. The deal includes an option to cancel the equivalent of two years’ worth of allowances by 2030, based on calculations by Sandbag, an environmental group in London.