7 May 2015 – The European Parliament and Council have given the green light to a Commission proposal to bring forward reform of the European Union Emissions Trading System (EU-ETS).
A Market Stability Reserve (MSR) will be included from 2019, limiting the number of carbon allowances on the market and encouraging investment in clean energy and low carbon solutions.
The Prince of Wales's Corporate Leaders Group welcomed the development but said it would come later than hoped, and that further action was needed to improve the EU-ETS and encourage low carbon growth.
Sandrine Dixson-Declève, Director of The Prince of Wales's Corporate Leaders Group, said:
"This is good news for business and the environment – introducing a Market Stability Reserve to the EU carbon market in 2019, including all postponed and unallocated carbon credits, will help to drive investment in cleaner technology.
"While this outcome will aid Europe's transition to a low-carbon economy, it still comes later than hoped. That's why the Commission must press ahead with its proposals to address carbon leakage in the EU-ETS, and establish a carbon price that is relevant to the operational and capital investment decisions that companies are making today."
A letter from 70 leading European business voices and utility firms in February, co-ordinated by The Prince of Wales’s Corporate Leaders Group and Eurelectric, called for reform to be introduced by 2017 at the latest.
