EU agrees provisional deal to begin carbon market reforms

European Union flags flutter outside the EU Commission headquarters in Brussels May 5, 2015. REUTERS/Yves Herman (Reuters)

BRUSSELS (Reuters) - The European Union agreed a deal on Tuesday to start reforming the EU Emissions Trading System from Jan. 1 2019, EU sources said. Negotiations between the European Commission, the European Parliament and EU member states agreed an outline legal text to start operating a so-called Market Stability Reserve. The reserve will take away some of the glut of permits that has depressed prices on the world's biggest carbon market. The agreement on the text follows months of negotiations, with Poland leading opposition to any action before the European Commission's original proposal to start reform in 2021. It still requires further endorsements before becoming law, including a plenary vote in the European Parliament. (Reporting by Barbara Lewis; editing by Susan Thomas)