Lobbying is intense around the Market Stability Reserve proposal, the policy that can help fix the EU Emissions Trading Scheme. After failing to make any changes to the Commission proposal in the Industry Committee in January, some regressive business voices have been further raised in an attempt to scare politicians from reforming the carbon market.
Eurofer, the association of steel makers in Europe, and ArcelorMittal, its largest member, and the largest steel company in the world, have been lobbying MEPs with claims about the effects of the proposed Market Stability Reserve.
Sandbag has gone back to the data, and seen how these sometimes sensational claims stand up against the facts.
European industry should welcome a strong, early Market Stability Reserve, as a pragmatic response to the problems with the EU Emissions Trading Scheme. A functioning carbon market remains one of the most cost-effective methods to cut greenhouse gas emissions.
Please consult our online MSR tool to see how an early start to the MSR, as well as removing the backload and unallocated allowances, can tackle the vast surplus on the EU Emissions Trading Scheme.