EU ETS: Impacts of the new clean energy package targets on the MSR

The Market Stability Reserve was put in place to address the current surplus of EUA’s in the market, as well as “normal” levels of surplus that may emerge in future years. The performance of the MSR is therefore critical to the well-functioning of the EU ETS. However, the parameters have not been tested in real life, and […]

EU ETS: free allocation adjustments due to production changes in Phase 4

The recent revision for the fourth phase of the EU ETS extended the use of transitional free allocation for the period 2021 – 2030. Moreover, the revision introduced some new rules for free allocation and adjustments to free allocation due to production changes. While these new rules set out the main criteria, the European Commission […]