Revision of the market stability reserve for the EU emissions trading system

Part of a broader revision targeting the EU emissions trading system (ETS), the European Commission proposal to revise the market stability reserve (MSR) for the ETS would prolong its current parameters. Under the current rules, the percentage of allowances put into the MSR, and the minimum allowances placed in the reserve, have been doubled until end-2023, to allow for a quick removal of surplus EU ETS allowances. The proposal aims to maintain the current doubled intake rate (24 %) and minimum number of allowances placed in the reserve (200 million) until 31 December 2030, the end of Phase IV of the EU ETS. A trilogue agreement was reached on 18 December 2022, and the agreed text is due to be voted during Parliament's March I plenary session.