The Environment Council has agreed a general approach on reforming the Emissions Trading System after 2020.
Member States proposed to strengthen the Market Stability Reserve, a facility designed to take excess carbon permits out of the market from 2019 onwards. The rate at which it will take permits out of the market would be doubled. And permits stored in the reserve would be cancelled if a certain threshold is reached.
The linear reduction factor will remain at 2.2%, up from 1.74% today, in line with the Commission’s original proposal.
