Workshop on the ETS Market Stability Reserve

16-02-2015

This report summarises the presentations and discussions during the workshop on the ETS Market Stability Reserve (MSR), held on the 5th November 2014. The aim of the workshop was to allow an exchange of views between MEPs, the European Commission, stakeholders from energy and industry sectors and NGOs on the need to intervene in the EU ETS in order to address the current oversupply of allowances that are undermining the effectiveness of the policy instrument. There was a general consensus amongst all participants for greater supply-side flexibility of allowances in the EU ETS with the majority of speakers arguing in favour of an earlier implementation date for the MSR and the prevention of backloaded allowances from re-entering the market before 2020 to create a stronger and more stable price signal for low carbon investments.

This report summarises the presentations and discussions during the workshop on the ETS Market Stability Reserve (MSR), held on the 5th November 2014. The aim of the workshop was to allow an exchange of views between MEPs, the European Commission, stakeholders from energy and industry sectors and NGOs on the need to intervene in the EU ETS in order to address the current oversupply of allowances that are undermining the effectiveness of the policy instrument. There was a general consensus amongst all participants for greater supply-side flexibility of allowances in the EU ETS with the majority of speakers arguing in favour of an earlier implementation date for the MSR and the prevention of backloaded allowances from re-entering the market before 2020 to create a stronger and more stable price signal for low carbon investments.