EU ETS : the Shift’s Position Paper on the Market Stability Reserve


The Shift Project published its Position Paper on the Market Stability Reserve (MSR), which is the first step toward a structural reform of the EU ETS. This paper is open to comments until November 27th.

While we support an early implementation of this reform and the direct integration of backloading measures, our position paper highlights 3 points:

1. Adding the possibility of placing allowances within the MSR if prices fall too rapidly

2. Making sure that future release of allowances from the MSR will not contradict long term scarcity, thus reducing the environmental integrity of the EU ETS

3. Implementing periodic reviews of the MSR functioning and parameters

Position Paper on MSR


Frédéric Dinguirard, Project Manager