EU finally approves CO2 ‘backloading’ regulation

EU member states have finally voted through the ‘backloading’ proposal to delay the supply of 900 million allowances to the EU emissions trading scheme (EU ETS).

It is hoped the move will boost, or at least stabilise, the carbon price in the short term.

At a meeting on 8 January, diplomats approved a European Commission amendment to the ETS auctioning regulation meaning 400 million allowances can be cut from the market this year, if the measure is implemented by the end of March.