EU carbon reserve threshold to rise to 700m allowances under provisional deal
( October 21, 2026, 11:10 GMT | Official Statement) -- MLex Summary: The European Parliament and EU governments have reached a provisional agreement to raise the limit on carbon allowances held in the EU’s market stability reserve from 400 million to 700 million ahead of excess allowances being permanently cancelled. The change aims to limit price volatility and protect industrial competitiveness as emissions limits tighten. The cancellation mechanism is retained, with a gradual reduction of the new threshold to be considered as part of a broader review of the EU carbon market. The agreement still requires formal approval by both institutions.Press release follows. ...
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