FEATURE: Proposed EU Market Stability Reserve reform exposes wider ETS governance dilemma

Published 14:20 on April 2, 2026 / Last updated at 14:23 on April 2, 2026 / and / EMEA (Compliance Markets & Taxes, Europe), Insights (Features)

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A European Commission proposal to tweak the Market Stability Reserve (MSR) in the EU Emissions Trading System (ETS) – widely seen as a minimalist, targeted amendment – could expose a broader governance problem with the supply‑balancing tool, experts say, as pressure builds ahead of a scheduled review of the bloc’s compliance carbon market in July.
A European Commission proposal to tweak the Market Stability Reserve (MSR) in the EU Emissions Trading System (ETS) – widely seen as a minimalist, targeted amendment – could expose a broader governance problem with the supply‑balancing tool, experts say, as pressure builds ahead of a scheduled review of the bloc’s compliance carbon market in July.


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