Quick MSR reform is likely limited to the elimination of the invalidation clause

The short-term EU ETS intervention, requested by European member states and industry in an attempt to lower energy costs in Europe, is reportedly even milder than previously anticipated. Reporting indicates that the Commission will seek to remove the cap on reserved allowances in the MSR in their proposal expected on 1 April, following the College of Commissioners meeting. The market has taken this headline as a bullish signal, as it should have no immediate impact on supply for the coming years.