European Parliament Dilutes Carbon Pricing Mechanism (euobserver.com)

• Automatic increase of allowance supply triggered at 45 EUR/t.
• Market stability reserve modifications for 2026.
• Concerns regarding industrial cost shielding versus emission reduction goals.

"MEPs have approved adjustments to the incoming carbon pricing system that will release more emission allowances once prices exceed 45 Euro per tonne. This policy shift is intended to mitigate extreme price volatility, though environmental advocates argue it compromises the efficacy of the EU's decarbonization pathway."