MEPs want to retain the integrity of the EU ETS
EU ETS revenues will come from frontloading
Initial Commission proposal to sell allowances from Market Stability Reserve rejected by both EU Parliament and Council
A proposal to sell allowances from the EU Emission Trading System’s (ETS’) Market Stability Reserve (MSR) to raise money to finance the bloc’s transition from Russian gas has been replaced with alternative measures during the EU’s lawmaking process. The European Commission initially proposed raising €20bn ($19.7bn) by selling allowances from the MSR. But both the Council of the EU and members of the European Parliament have opted instead on for a frontloading scheme—with the Council suggesting combining this with sales from the ETS’s Innovation Fund. Under Parliament’s proposal, allowance auctions will be brought forward from after 2026 and held during the 2023-25 period. This “frontloading”
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