Written by Henrique Morgado Simões (5th edition, updated on 17.05.2023).
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 was assigned to the Committee on the Environment, Public Health and Food Safety (ENVI), which adopted its report on 15 March 2022. On 5 April 2022, the Parliament adopted its position, with amendments to the recitals. The Council adopted its general approach on 29 June 2022. Trilogue negotiations began on 6 September 2022 and a provisional agreement was reached on 16‑17 December 2022, amending the proposal’s recitals but keeping the articles unchanged. On 19 April 2023, the final act was signed, and on 25 April 2023 it was published in the Official Journal of the European Union. The decision entered into force on 15 May 2023.
- May 2023: Revision of the market stability reserve for the EU emissions trading system: Fit for 55 package (5th 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: Decision (EU) 2023/852|
OJ L 110, 25.4.2023, pp. 21-24.
[…] The EU’s law-making representative body, the European Parliament, is set to assemble next week on May 16 th and will be voting on modifications to the “Suitable for 55,” the roadmap for emissions decrease of a minimum of 55% by 2030, reported KraneShares in the Environment Market Now blog site. The reforms will target the EU Emissions Trading System (EU ETS), and propositions consist of changing the emissions cap, presenting a more aggressive yearly decrease of the cap, and stiffening the marketplace Stability Reserve that offers cost stability and works to line up need and supply of allowances, per the European Parliamentary Research Study Service […]
[…] The EU’s law-making representative body, the European Parliament, is set to convene next week on May 16th and will be voting on amendments to the “Fit for 55,” the roadmap for emissions reduction of at least 55% by 2030, reported KraneShares in the Climate Market Now blog. The reforms will target the EU Emissions Trading System (EU ETS), and proposals include adjusting the emissions cap, introducing a more aggressive annual reduction of the cap, and stiffening the Market Stability Reserve that provides price stability and works to align demand and supply of allowances, per the European Parliamentary Research Service. […]