Published by Global Banking & Finance Review®
Posted on February 18, 2026
2 min readLast updated: February 18, 2026
Add as preferred source on GoogleEU countries back stronger price controls in the carbon market to address concerns over rising fuel costs, with the ETS2 scheme set to start in 2028.
By Kate Abnett
BRUSSELS, Feb 18 (Reuters) - European Union countries on Wednesday backed plans to strengthen price curbs in the bloc's upcoming carbon market, EU diplomats told Reuters, in response to concerns from some governments that the policy could raise fuel bills.
The changes to the carbon trading scheme, known as ETS2, still need to be negotiated and approved by EU countries and the European Parliament. The Parliament is still finalising its position, after which the negotiations can begin.
EU countries' ambassadors backed the price curb plans, which the European Commission proposed last year, in a closed-door meeting on Wednesday, the diplomats said.
DELAYED LAUNCH
ETS2 will impose a price on CO2 emissions from heating and transport fuels from 2028, and spend the collected revenues on helping households and businesses invest in electric cars and energy-saving renovations.
The scheme has faced mounting political pushback from governments including Slovakia and the Czech Republic, who warn ETS2 could lead to consumers paying more for energy and want the scheme further delayed. The EU already delayed its launch by one year, to 2028.
The changes backed by countries on Wednesday are designed to tame ETS2 prices by releasing more carbon permits into the market if the carbon price reaches 45 euros ($53.25) per metric ton of CO2 - potentially adding up to 80 million permits to the market each year.
A group of five other governments, including Sweden and the Netherlands, on Tuesday opposed further delays to the system, which they said would undermine the EU's efforts on climate change and create uncertainty for investors.
($1 = 0.8451 euros)
(Reporting by Kate Abnett, editing by Bart Meijer and Andrei Khalip)
The carbon market is a trading system for carbon credits, allowing countries or companies to buy and sell allowances for greenhouse gas emissions to meet regulatory limits.
ETS2 refers to the European Union's Emissions Trading System, which aims to reduce greenhouse gas emissions by setting a cap on total emissions and allowing trading of emission allowances.
Carbon permits are allowances that enable the holder to emit a certain amount of carbon dioxide. They can be traded in the carbon market to incentivize emission reductions.
Climate change refers to significant changes in global temperatures and weather patterns over time, largely driven by human activities, particularly the burning of fossil fuels.
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