Introduced in 2018, the Market Stability Reserve (MSR) functions as the oversupply control mechanism of the EU Emissions Trading System (ETS). Created to address structural oversupply on the market, every year it extracts a share of surplus emissions allowances. The MSR came to the rescue of the misfiringETS by ending a decade of low market confidence and rock bottom prices. In practice it has proven effective, syphoning oversupply out of the system and invalidating (or deleting) over 3.4 billion EU Allowances (EUAs).
The Commission planted a carbon bomb in its proposal to reform the supply control mechanism within the EU’s carbon pricing scheme for road transport and buildings.
Carbon Market Watch’s 10-point plan to keep the EU Emissions Trading System on track to serve the climate and society.
Read Carbon Market Watch’s 10 point plan designed to make sure lawmakers keep this most crucial EU climate policy on track
Carbon Market Watch outlines the priorities for the upcoming revision of the EU Emissions Trading System
7 May 2026 | 11:00-12:00 CET | Online Join Climact and Carbon Market Watch for a deep dive into the future of the EU ETS. With the EU having committed to cutting net greenhouse gas emissions by 90% by 2040, and a scheduled update of the EU ETS and the Market Stability Reserve (MSR) set …
Read more “The future of the EU ETS1 to 2040: Fact-based scenarios to reach the 90% EU climate target”
In this joint letter to the European Commission, Carbon Market Watch and allied NGOs demand that the EU executive refrain from meddling with the Market Stability Reserve, which underpins the EU’s Emissions Trading System and safeguards the carbon price by soaking up excess liquidity in the market.
CMW’s Jeanne Marullaz reports that there are clear signs of growing support for the EU Emissions Trading System as a driving force of both climate action and European competitiveness – from civil society to governments and industries
Despite being the most climate-damaging form of travel, private jet use has reached record highs, yet most flights are exempt from paying a carbon price, and all are exempt from fuel taxes. This must end.
