ETS2 MSR reform: ENVI endorses modest tightening, while shifting the real battle to the ETS Directive review

In a vote on 15 April, the European Parliament’s ENVI committee endorsed a compromise on the ETS2 Market Stability Reserve that represents a modest tightening compared to the Commission’s proposal, most notably by reintroducing a phased cancellation of surplus allowances between 2034 and 2036 and by strengthening oversight through a mandatory impact assessment four years after the system’s start.