Written by Henrique Morgado Simões (3rd edition, updated on 03.05.2022).
The proposal to revise the market stability reserve (MSR) for the EU emissions trading system (ETS) consists of prolonging its current parameters. Under the current rules, the intake rate of allowances to the MSR and the minimum allowances placed in the reserve have been doubled until the end of 2023, to allow for a quick removal of surplus EU ETS allowances. The proposal is aimed at maintaining 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.
In Parliament, the file has been assigned to the Committee on the Environment, Public Health and Food Safety (ENVI). The committee adopted its report on 15 March 2022, with 65 votes in favour, 20 against and one abstention. During the plenary sitting of 5 April 2022, the Parliament adopted, with amendments to the recitals, the institution’s position for negotiations, by 490 votes in favour, 127 against and seven abstentions. The Council is currently debating the proposal. Its December 2021 progress report notes delegations’ differing views.
- May 2022: Revision of the market stability reserve for the EU emissions trading system: Fit for 55 package (3rd edition)
|Proposal for a decision of the European Parliament and of the Council amending Decision (EU) 2015/1814 as regards the amount of allowances to be placed in the market stability reserve for the Union greenhouse gas emission trading scheme until 2030.|
|Committee responsible:||Environment, Public Health and Food Safety (ENVI)||COM(2021) 571|
|Rapporteur:||Cyrus Engerer (S&D, Malta)||2021/0202(COD)|
|Shadow rapporteurs:||Cristian‑Silviu Buşoi (EPP, Romania)|
Emma Wiesner (Renew, Sweden)
Michael Bloss (Greens/EFA, Germany)
Alexandr Vondra (ECR, Czechia)
Silvia Modig (The Left, Finland)
|Ordinary legislative procedure (COD)|
(Parliament and Council on
equal footing – formerly ‘co-decision’)
|Next steps expected: Launch of trilogue negotiations|