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European Council approves carbon market reform

European Council approves carbon market reform


 

The European Council has given its final approval to the establishment of a Market Stability Reserve for the EU Emissions Trading Scheme (EU ETS). The mechanism will, in the event of a significant surplus of allowances within the EU ETS, see a percentage of allowances withdrawn from the market and placed in the reserve. In the opposite case, allowances would be returned from the reserve to the market. Speaking on Friday 18 September, energy and climate change secretary Amber Rudd said: “I welcome today’s agreement, which the UK has been driving forward and will enable businesses to remain competitive and grow as we move to a low-carbon future.”

 

European Council