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8. April, 2024

Market Stability Reserve to address drop in 2023 emissions and first RePowerEU volumes

European Carbon
Ingvild Sørhus
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The official number of oversupply of emission allowances (EUAs) in the EU ETS continues to shrink despite the sharp demand drop in 2023 (CO2 output dropped 16% according to the verified emission data revealed on 3 April). For the upcoming period from September 2024 to August 2025, the market stability reserve is expected to withhold 266 Mt compared to 273 Mt in the same period 2023-2024. This year’s total number of allowances in circulation reflects the 2023 emission drop and the first injected REPowerEU volumes.

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