A new market stability reserve for the EU’s Emissions Trading Scheme (ETS) will come into operation in 2019, in a compromise deal that should see legislation passed on the measure.
The new system will automatically take ETS allowances off the market and into the reserve if there is surplus above a certain threshold. In the opposite scenario, allowances “could be” returned to the market.
The European Commission had originally planned to begin the measure in 2021 but opponents argued that faster action was required.