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Key EU Lawmaker Proposes New Way to Tame Carbon Price Shocks

  • EU Parliament’s Peter Liese tables fixes to CO2 market reform
  • Record carbon price increases spark political debate in Europe
A pedestrian wearing a protective face mask passes European Union flags

A pedestrian wearing a protective face mask passes European Union flags

Photographer: Geert Vanden Wijngaert/Bloomberg
Updated on

Lead lawmaker Peter Liese proposed that the European Union should release some permits held in a carbon market reserve if the price of pollution surges above certain limits.

Liese, a German member of the European Parliament, is seeking to strengthen a mechanism preventing excessive price growth as part of a sweeping reform of the EU Emissions Trading System. The additional supply would be enabled if, for more than six consecutive months, the average permit price is more than double the average during the two preceding years, according to a set of amendments he tabled in the assembly’s environment committee on Wednesday.