The proposal concerns the market stability reserve, which is responsible for regulating the supply of CO2 emission allowances. This system reduces the volume of allowances intended for auction in order to remove the surplus of allowances in the system and thus maintain their price at an appropriately high level. Until now, allowances held in reserve were automatically deleted if the total number of allowances in circulation was greater than 400 million.
On Wednesday, the EC proposed a change aimed at stopping the process of invalidating allowances if their number exceeds 400 million.
See also: In the EU, “there are no people willing to kill the ECJ”. How will the proposed actions affect energy prices?
Changes are coming to the ECJ. The EC presents proposals
After Easter, the EC will also present a proposal that will increase the number of free allowances in the system. In July, the Commission announces changes to the ETS directive, which are to prepare the system for the next decade. Then a decision will be made whether the EU will refrain from withdrawing free permits from the system at all.
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The European Commission was asked to introduce changes to the ETS by EU leaders at their summit on March 19. This was sought by the leaders of over 10 member states, including Poland, Italy, Austria, Belgium, the Czech Republic, Hungary and Greece.
