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Important Signal / Market Stability Reserve should curb prices and not drive them up / Review in Summer


“This is a very important signal to the economy and to the people who are worried about their jobs. In the future, the Market Stability Reserve in the emissions trading system must ensure that prices are dampened and not driven upwards,” explained Dr. Peter Liese, the climate policy spokesperson of the largest group in the European Parliament (EPP-Christian Democrats), regarding a proposal made by the European Commission on Wednesday.

The Commission has proposed to change the regulations for the so-called Market Stability Reserve. The Market Stability Reserve was decided upon in 2015 to drive prices up in the emissions trading system. At that time, prices ranged between €0 and €10. Therefore, it was decided to remove surplus certificates from the system. Since then, prices have multiplied. The price recently stood at €70, and at times even reached €100. Therefore, the European Commission proposed on Wednesday to change the Market Stability Reserve. The regulation that from a quantity of more than 400 million certificates in the MSR, all additional certificates are to be deleted, is to be abolished. This is intended to ensure that in the future, if there are very high prices, there will always be enough certificates available to dampen the price.

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Peter Liese: European emissions trading must be maintained and will be maintained, but adjustments are necessary

“The European emissions trading system must be preserved and will be preserved,” stated Peter Liese, climate policy spokesperson for the largest group in the European Parliament (EPP, Christian Democrats), ahead of the European Council summit on Thursday and Friday. Among other things, the future of Europe’s most important climate protection instrument will be discussed at this summit.

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Preserve climate targets / emissions trading remains the most important instrument, at the same time it is right that we urgently need reforms 


“The European Commission will propose initial changes to the European emissions trading system on Wednesday and will thus also respond to criticism of the system. At the same time, however, it is clear that abolishing or hollowing out the system would have catastrophic consequences,” pointed out the climate policy spokesperson of the largest group in the European Parliament, Peter Liese (EPP).

“Emissions trading is the most important climate protection instrument of the European Union and also the most important instrument worldwide. I still consider its abolition to be completely unjustified, and I am glad that many supporters of emissions trading have recently spoken out, especially from the business community. Nevertheless, reforms are urgently necessary. I expect that the European Commission will, as a first step, propose a reform of the market stability reserve tomorrow, Wednesday. This market stability reserve was introduced when the ETS price was at rock bottom and there were practically no incentives for investments in climate protection. However, prices have now increased, from around 10 euros in 2018 to almost 70 euros, and at times even reached 100 euros. Right now, we no longer need an instrument to counter low prices. In the future, we will need an instrument to counter high prices,” said Liese.

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Beneficial for the climate / International pact could collapse if Argentina follows Trump – Mercosur helps prevent this


“The provisional entry into force of the Mercosur agreement is, in my firm conviction, also beneficial for the climate,” said Dr Peter Liese, spokesperson on climate policy for the largest political group in the European Parliament (EPP-Christian Democrats), following the European Commission’s announcement to provisionally apply the agreement.

“Mercosur is important for geopolitical reasons, as we can unfortunately no longer fully rely on our traditional partners. We need new markets for our economy, which is currently facing difficulties. At the same time, I believe Mercosur is crucial for maintaining the international climate process. Donald Trump withdrew from the Paris Climate Agreement, but no one followed his example – not even his ideological ally, Argentina’s President Javier Milei.

  1. Discussions on European emissions trading
  2. European Investment Bank mobilizes 3 billion Euro for clean transition in road transport and heating / Frontloading of the ETS2 revenues agreed  
  3. Failure of Mercosur could be very dangerous for international climate policy
  4. EU Commission proposes long-awaited CBAM reform