On Tuesday 14 March, the European Parliament approved by a large majority (504 votes in favour, 118 against and 11 abstentions) the Interinstitutional Agreement reached at the end of 2022 (see EUROPE 12927/12) on the revision of the Market Stability Reserve (MSR) for the EU Emissions Trading System (ETS).
Launched in 2005, the ETS determines the total amount of greenhouse gases that companies are allowed to emit. The latter can, while conforming to this ceiling, receive or purchase tradable emission allowances. Under the ETS, the MSR was established by Decision (EU) 2015/1814. The revised proposal (see EUROPE 13106/15) aims to maintain a functional ETS in the face of the 2030 targets, safeguarding the double entry rate and the minimum number of allowances in the reserve, to ensure market stability. This would be achieved by absorbing the EU’s surplus of allowances more quickly, until 31 December 2030.
“This should ensure that the market remains stable for years to come”, said shadow rapporteur Cristian-Silviu Busoi (EPP, Romanian) during the plenary debate on Monday 13 March. He added: “We are committed to achieving our goals without compromising the competitiveness of our industries and businesses”. Michael Bloss (Greens/EFA, German) stressed that: “We cannot rely on this mechanism during the phase-out of coal, it only maintains the current level”.
French MEP Marina Mesure (The Left) was much more critical: “Since its creation, the carbon market has had marginal effects on the reduction of emissions, some industrialists have hijacked it and have gorged themselves by reselling their rights to pollute”.
After the vote, the S&D group – from which the rapporteur, Maltese MEP Cyrus Engerer, comes – said on Twitter: “Today’s EP vote on the MSR will help EU industries to better decide on their climate-friendly investments”.
See the text: https://aeur.eu/f/14t (Original version in French by Nithya Paquiry)