The business leaders warn that an effective MSR is needed sooner rather than later to keep the continent on track for developing a low carbon economy and energy system. They say it will give the necessary signals to industry to invest in low carbon solutions and mitigate any downward pressure on the price of carbon.
The letter was co-organised by The Prince of Wales's Corporate Leaders Group, who first wrote to MEPs on the issue in January, and the EU power sector association EURELECTRIC.
"The EU-ETS is the cornerstone of EU climate policy, so we have to get it right - it must be reformed to drive forward green growth sooner rather than later.
"Establishing a Market Stability Reserve by 2017, with the 900 million back-loaded emissions allowances included in the Reserve from the outset, will help to rebalance the emissions trading market, enable a more robust carbon price, and stimulate the transition to a low-carbon economy."
Philippe Joubert, Chair of The Prince of Wales's Corporate Leaders Group
The EU parliament's environment committee is due to vote on the issue on Monday 23–Tuesday 24 February 2015.