The European Parliament is poised to signal support for the option of withholding some carbon permits to bolster prices after political parties in the assembly reached a compromise tied to draft energy legislation.

Carbon allowances surged as much as nine per cent to an eight-week high after parliament industry committee members representing all the parties proposed amending a planned energy efficiency law by saying that the European Commission should put forward, “if appropriate,” measures that “may include to withhold the necessary amount of allowances” from auctions.