EU countries approve ETS 2 amendments, aiming to stabilize the emissions allowance market

EU finance ministers gave final approval at a meeting in Luxembourg to amendments to the ETS 2 emissions trading system, which will launch fully in 2028, one year later than originally planned. The amendments strengthen the Market Stability Reserve by automatically adjusting the number of allowances in circulation to balance supply and demand. The Council of the EU said this would help create a stable and predictable allowance market before the system launches. ETS 2 will cover road transport and building heating, and establish a Social Climate Fund to mitigate the impact on low-income households. The decision will enter into force on the twentieth day after its publication in the Official Journal of the European Union.