The market stability reserve aims to address the surplus of emission allowances that has built up in the EU emission trading system (EU ETS) since 2009 and to improve the system’s resilience to major shocks by adjusting the supply of allowances to be auctioned.
The decision on the market stability reserve has been revised in the ‘Fit for 55’ package that aims to enable the EU to reduce its net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels and to achieve climate neutrality in 2050.
The decision prolongs beyond 2023 the increased annual intake rate of allowances (24%). In addition, further changes to the market stability reserve will be adopted as part of the revision of the EU ETS expected to be adopted shortly.
Source consilium.europa.eu
