European Union member states and the European Parliament have reached an agreement on revisions to the Emissions Trading System (ETS 2) aimed at stabilizing carbon permit prices. The deal, finalized late Wednesday night, introduces a price ceiling of €45 per tonne of CO2. Once this price is reached, permits will be automatically released from the Market Stability Reserve. This mechanism is designed to prevent significant fluctuations in permit costs, offering greater predictability for businesses. The Council of the EU, representing the member states, announced the agreement. The revised ETS 2 is a key component of the EU’s efforts to reduce greenhouse gas emissions and achieve climate neutrality. Further details regarding the implementation of the new rules will be released following formal adoption.