MOSCOW, January 13 (Sputnik) — European Union member states will hold talks in Brussels on Tuesday about Latvia’s efforts to impose controls on the supply of permits in the bloc's carbon emissions market, Bloomberg reported Tuesday, citing unnamed sources.
Latvia, which took over the European Union’s rotating presidency earlier in January, is seeking to prevent a glut of carbon permits on the market by transferring 900 million carbon allowances to the bloc's market stability reserve, the news outlet cited sources familiar with the situation as saying.
This measure will prevent governments from auctioning the permits to companies between 2019 and 2020. The reduction of available permits will aid the European Union in easing the bloc’s surge in its oversupply, which has prompted sharp declines in the prices of carbon allowances in the past few years.
One permit, also known as an allowance, equivalent to about one metric ton (2,204.6 pounds) of carbon dioxide emissions, currently trades at almost 7 euros ($8.27).
The European Union implemented its Emission Trading System (ETS) in 2005, aimed at reducing emissions in the bloc by putting a financial value on carbon. The European Union reached a deal to cut emissions by 40 percent by 2030.
