Market Stability Reserve Dialogues

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MSR: Why, When, How?
Informal Expert Discussion

We are a few weeks away from the conclusion of a trilogue (involving Council of the EU, the European Parliament and the European Commission) to decide on the timing and the scale of an intervention to the EU Emissions Trading Scheme, known as the MSR (Market Stability Reserve).
There have been many analytical and political discussions on this issue. Most recently, a model comparison exercise convened by the research network Climate Strategies involved groups of 12 institutions including the German Institute for Economic Research, the London School of Economics and Political Science, the Climate Economics Chair of Paris-Dauphine University and Resources for the Future in Washington DC.
These meetings summarised Climate Strategies’ analysis on market failures in current EU ETS design, and assessed how different design choices of a Market Stability Reserve can improve price credibility and consistency to support investments in the Energy and Energy intensive industries. This has been the basis for the open discussions with policy makers, businesses and the academia in Warsaw and Prague.

The event in Warsaw was held on the 4th of May and co-hosted by the Institute of Sustainable Development in Poland and the Energy Market Agency with the support of Climate Strategies.

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The event in Prague was hosted by Climate Strategies and the Institute of Economic Studies at Charles University on the 5th of May.
The Presentation for this event can be found here.

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