European Parliament approves EU ETS

The plenary of the European Parliament has approved reform to the EU Emissions Trading System, most notably the establishment of a market stability reserve (MSR). Commenting on the plenary vote, IETA’s Director of European Policy Sarah Deblock says: ‘IETA welcomes the vote by the European Parliament to create a reserve that allows the system to be more flexible to changing circumstances. The adoption of the MSR reconfirms the political support for the EU ETS to play a central role in the EU’s strategy to reduce emissions cost-effectively. Today’s vote is another boost to the world’s largest cap-and-trade system for emissions. It creates a helpful environment for the forthcoming legislative proposal to revise the ETS Directive in line with the EU’s 2030 climate and energy framework.’