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.
While we support an early implementation of this reform and the direct integration of backloading measures, our position paper highlights 3 points:
- Adding the possibility of placing allowances within the MSR if prices fall too rapidly
- 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
- Implementing periodic reviews of the MSR functioning and parameters