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Watch: EU Council, Parliament Converging on Carbon Market Positions

The EU Emissions Trading System is facing a future of tighter supply as the EU's legislative bodies move forward on reforms that aim to curb a long running surplus of carbon allowances. While the system remains oversupplied in the short-term, carbon prices could be poised for future growth if the reform proposals pass into law.

Frank Watson, managing editor, European emissions, examines the background to proceedings and assesses the latest developments, allowing for three-way talks to commence between the parliament, Council and European Commission.