EU Moves to Prevent Fuel-Cost Shock From New Carbon Market

Brussels will release additional pollution permits if carbon prices rise too quickly.

European deputies take part in a meeting on EU emissions at the European Union Parliament in Brussels on June 22, 2022. John Thys/AFP via Getty Images

The European Union has agreed on new safeguards to prevent sharp increases in fuel and heating costs when the bloc launches a new carbon-pricing system in 2028.

The agreement would allow regulators to release additional pollution permits into the market if carbon prices rise too quickly, a move officials say should help limit price swings while preserving the bloc’s climate goals.