The European Commission is increasingly signalling that the Market Stability Reserve (MSR) will be the primary lever to address carbon price volatility and short-term cost pressure in the EU ETS. Recent communication from Commission President Ursula von der Leyen points to a clear objective: deliver tangible near-term relief, while preserving the ETS as a market-based driver of decarbonisation.
This places policymakers in a difficult position — balancing industrial competitiveness concerns with the need to maintain a credible carbon price signal.
Veyt has assessed four potential MSR intervention pathways, quantifying their impact on supply, market balance, and EUA price trajectories.
A weekly cap of what moved EUA prices and a clear view of the week ahead. We set out the drivers, their directional impact, and what matters next.
Veyt specialises in data, analysis, and insights for all significant low-carbon markets and renewable energy.
