The European Commission has proposed to reform the EU Emission Trading Scheme (EU ETS) by introducing a market stability reserve (MSR) as of 2021. This MSR would allow the Commission to add or remove carbon allowances from the system, according to pre-set rules, to protect the EU ETS from economic fluctuations and to remove the surplus of free allowances that has accumulated over the last few years.
However, European Industries have been raising the alarm over falling competitiveness, the deindustrialisation of Europe and the impact of the Ukrainian crisis which has refocused attention on energy security.
At the October 2014 EU Summit, EU leaders reached an agreement on the 2030 climate and energy package. They explicitly endorsed a Commission proposal relating to the «Market Stability Reserve» (MSR) but also agreed that extra free carbon allowances will continue to be granted after 2020 to those industries at risk of carbon leakage.
The current debate between EU decision-makers focuses on the date for the entry into force of the reserve. The UK, France and Germany all want the mechanism to start in 2017, but Poland is leading the opposition to an early implementation and no qualified majority prevails.
On November 13, MEP Ivo Belet – lead rapporteur on the issue – tabled his draft report on behalf of the ENVI Committee. The ITRE committee is due to give an advisory opinion on 21 January and the ENVI committee is set to vote on the measure on 24 February 2015.
Jos Delbeke joined the European Commission in 1986. He initially focused on market-based instruments, cost-benefit analysis and the new chemicals legislation REACH (1994-1998), before becoming the European Commission’s chief negotiator at the UNFCCC Conference of the Parties on Climate Change (1999-2003). Deputy Director-General of DG Environment (2008-2010), Jos Delbeke has become Director General for Climate Action in February 2010.
Bas Eickhout has been a Member of the European Parliament since 2009 as a Greens/EFA Group MEP for the Dutch political party GroenLinks. He is a member of the Committee on the Environment, Public Health and Food Safety (ENVI). He was a member of the delegation of MEPs who went to the UN Climate Change Conference COP 20 in Lima in December 2014. Eickhout studied Chemistry and Environmental Science at the Radboud University in Nijmegen and lives in Utrecht.
Anders Marvik is currently vice-president and head of Statoil EU affairs. He has worked in the oil and gas industry for 20 years, and has gained broad industry understanding and knowledge. He has held several international management roles, and gained deep experience in energy politics, strategy, business intelligence, industry analysis, business development, treasury, technical understanding and full value chain knowledge and experience.
Moderated by leading climate & energy journalist Sonja van Renssen