EU ETS Market Stability Reserve: Flexibility for the future

Understand how the Market Stability Reserve (MSR) influences prices and supply – and what the 2025 review means for compliance and investment decisions. 

As the EU works towards its 2040 climate target, the MSR remains vital to maintaining balance in the EU ETS. Veyt’s latest analysis highlights how increased flexibility in MSR design can strengthen market stability in a tightening carbon market. 

Drawing on proprietary modelling, the whitepaper shows that a dynamic release mechanism, combined with REPowerEU adjustments, can reduce price volatility, mitigate scarcity risks, and support a resilient carbon-pricing framework – bridging the EU ETS towards a net-negative trading system. 

Published in October 2025. 

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