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European Parliament wants to increase the carbon reserve limit from 400 to 650 million
Politics

European Parliament wants to increase the carbon reserve limit from 400 to 650 million

SAPO15 September 2026 at 16:20

The European Parliament approved a proposal to increase the carbon reserve limit from 400 to 650 million licenses. This change is part of a broader review of the European emissions trading system.

Currently, when the carbon market stabilization reserve exceeds 400 million licenses, licenses exceeding that value are automatically cancelled and can no longer be used in the market.

The proposal aims to give more flexibility to the European carbon market and avoid overly sharp fluctuations in carbon emission license prices.

Increasing the limit to 650 million licenses represents a significant adjustment in how the European carbon market operates, seeking to balance market stability with the climate objectives of the European Union.

Why this matters

This change directly affects companies and investors participating in the European carbon market, and may influence CO2 emission license prices. The measure comes in response to concerns about market volatility and aims to strengthen the EU's climate policy.

About this summary

This is our short summary of a report published by SAPO on 15 September 2026 at 16:20; the full text stays with the publisher. In our feed it sits under Politics. We currently carry 30706 items in that section.

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