EU Nations Seek New Carbon Market Changes to Prevent High Prices

A group of European Union countries want changes to the region’s new carbon market in order to prevent a surge in prices that could trigger a backlash against ambitious climate measures.

Member states including Austria, Belgium, the Czech Republic and Italy are seeking steps such as early auctions of permits and stronger price controls in the EU cap-and-trade carbon program for transport and heating fuels, according to a draft document seen by Bloomberg News. The EU is due to start the Emissions Trading System 2 in 2027, complementing the existing ETS1 system that covers manufacturers, airlines and shipping.