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Agreement reached on EU emissions market reform

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Report summary

On 5 May 2015, the European Council and Parliament reached agreement on the introduction of a Market Stability Reserve (MSR) measure to the EU Emissions Trading Scheme (ETS) from 2019. The introduction of the MSR represents a substantial reinforcement of the ETS and will drive a rebalancing of the carbon market's supply-demand balance. The cost of European emissions is likely to increase gradually in response to the MSR and high cost carbon will be a feature of the market in the long-term.

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    Agreement reached on EU emissions market reform

    PDF 336.83 KB

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This report includes 3 images and tables including:

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  • Agreement reached on EU emissions market reform: Image 1
  • ETS (EUA) price forecast – comparing the H2 2014 outlook and MSR 2019 case
  • Agreement reached on EU emissions market reform: Image 3

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