Get ready for higher costs at the pumps! In 2028 the EU's ETS2 system launches in full

In 2028, the EU's ETS2 system launches in full, covering road transport among other things. Brussels will impose new obligations on fuel distributors, but ultimately it's hauliers who will pay for it through higher bills at the pump. 🚛

The European Union is worried about a price shock, which is why the European Parliament and the Council of the EU have agreed preliminary changes to the market stability reserve. How does Brussels plan to prevent drastic price rises?

🚨 €45 ceiling: If the cost of a tonne of CO2 emissions exceeds this amount, 40 million additional allowances will be released from the reserve onto the market (instead of the standard 20 million).
🚨 260 million threshold: When the number of allowances in circulation on the market falls below this level, they will be released much more cautiously and gradually.
🚨 Longer operation: The emergency control mechanism is set to keep operating beyond 2030 too, in order to stabilise the market in the long term.
🚨 Continuous reduction: The total pool of available allowances will keep being cut, which is meant to force companies to reduce their emissions.

The above rules are, for now, a preliminary agreement. They still need to go through legal-linguistic review and receive formal approval from EU institutions. The revised stability reserve is due to start operating before the system's full launch. 📉

Will these EU "safety valves" actually protect the transport industry from drastic fuel prices? 🤨 What are your predictions?