The European Parliament and its member states have reached an “historic deal” that will help stabilize the EU Emissions Trading Scheme (ETS).
The first half of a two-part reform plan is meant to draw down a huge surplus of carbon allowances that have accumulated in the European market in recent years.
“The European carbon trading scheme, the largest in the world, has been in the doldrums for years,” Energy Post reports. “A large surplus of allowances, caused by overallocation, lack of demand thanks to the economic crisis and energy efficiency gains, and an influx of international carbon credits, has kept the carbon price in the single digits since 2011.”
