EU Announces Agreement to Reform Europe’s Carbon Market, Cap Natural Gas Prices

European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium, on June 17, 2022. Yves Herman/Reuters

The European Union announced on Dec. 18 a provisional agreement that reforms the bloc’s carbon market, successfully expanding a crucial component of the region’s broader green agenda.

After a 30-hour session, representatives of the 27 member states and the European Parliament agreed to apply the EU’s Emissions Trading System (ETS) to heating, road transportation, and maritime shipping. Officials also plan to use the agreement to accelerate requirements on companies to reduce pollution, whether they produce power or manufacture steel.