Pressure continues to mount for early EU ETS reforms

A consensus on early introduction of measures to address EU allowance surpluses and drive investment is emerging. But the debate is far from over

Steelworks (photograph: Scanrail/123RF)The prospect of early reforms to the EU emissions trading scheme (EU ETS) is gaining traction during discussions about how allowance surpluses should be addressed.

Key to these discussions is a proposal by the EU’s current Latvian presidency for surplus allowances being held back to drive up flagging carbon prices. It wants to release them directly into a market stability reserve (MSR).

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