EU Parliament approves plan to overhaul carbon market
The EU-Parliament has approved a proposal to begin a reform of the EU carbon market in 2019. Under the text negotiated with the Council, the Emissions Trading System (ETS) will set aside a portion of carbon credits if the surplus of emission allowances on the market exceeds a certain threshold. The economic downturn caused by the recent financial crisis had caused the ETS market to be awash with surplus carbon allowances. See also our cepInput on the EU’s climate and energy policy.