Market Stability Reserve (MSR)

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 to improve 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 08/04/2018

On 14 July 2021, the European Commission proposed the revision of the MSR, under the “Fit for 55” package of legislative proposals, in view to achieve climate neutrality in the EU by 2050, including the intermediate target of an at least 55% net reduction in greenhouse gas emissions by 2030

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