Under the deal agreed by negotiators from EU countries and the European Parliament, the EU carbon market will be reformed to cut emissions by 62% from 2005 levels by 2030. If fuel prices are as high in 2027 as today, the introduction of the carbon market would be delayed to 2028. If its CO2 price hits 45 euros ($47.62), then extra CO2 permits will be released into the market to attempt to tame prices. The price of EU carbon permits has soared in recent years, boosted by the expectation that tougher EU emissions targets would curb the supply of CO2 permits in the scheme. The benchmark EU carbon price closed trading at around 84 euros per tonne of CO2 on Friday, roughly ten times its value five years ago.

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