The Market Stability Reserve (MSR) aims to provide stability for the EU emissions trading system (EU ETS) by addressing the current surplus of allowances and improving the system’s resilience to major shocks by adjusting the supply of allowances to be auctioned.
Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme. Current consolidated version 01/01/2024.
On 14 July 2021, the European Commission proposed the revision of the MSR under the “Fit for 55” package, aiming to achieve climate neutrality in the EU by 2050 and an at least 55% net reduction in emissions by 2030.
As part of the revision, the intake rate of 24% and the minimum annual placement of 200 million allowances into the MSR have been extended until the end of 2030. A new invalidation threshold was introduced and the calculation method for surplus allowances (TNAC) was refined to reflect market developments. These changes were adopted through Decision (EU) 2023/852 and entered into force in April 2023.