Letters to Policy Makers

Letter to progressive Ministers: MSR in trilogue meetings

CAN Europe sent this letter that went to the Environment Ministers on the market Stability Reserve

Dear Minister,

Your representatives in Brussels are currently discussing the Market Stability Reserve proposal for the EU’s Emissions Trading Scheme (ETS).

We encourage you strongly to stick with your progressive position that would enable an early start of the MSR in 2017. Please defend an early start date and do not accept compromises that would give more free handouts to industry.

In order to address the current failure of the ETS to set an adequate pollution price signal the Market Stability Reserve needs to be enacted at the earliest possible date – in 2017 at the latest. Together with the earlier start date, both the 900 million back-loaded allowances and the approximately 750 million unused allowances should be kept from the market and be cancelled.

Recent research reconfirms energy prices are a marginal driver of global trade. Therefore, the impact on trade of more ambitious policies to reduce greenhouse gas emissions is extremely limited. Only a substantially improved MSR will deliver the needed investments to both protect our climate and support the growth of a future-proof European economy. We call on you to take this opportunity to support a better climate by supporting a 2017 start date and cancellation of both back-loaded and unused allowances.

European civil society is slowly losing its belief that the Emissions Trading Scheme can be fixed. It is up to you to ensure Europeans can regain confidence in this instrument. Furthermore, Europe getting its own carbon market in order will give a meaningful signal ahead of the international climate negotiations in Paris later this year. Climate Action Network Europe and its 130 member organisations would highly appreciate such an engagement from your side.


Wendel Trio, Director

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