The MSR is a long-term solution to the surplus of allowances on the EU carbon market aiming at rebalancing supply and demand as well as at making the carbon market more resilient to future shocks. The proposal to amend the MSR for ETS2 responds to the request from a broad majority of Member States and many MEPs and can be implemented prior to the launch of the ETS2 market.

This proposal would ensure stronger intervention if the price should go above a certain level, reinforce the capacity of the MSR to operate in the longer term, and ensure earlier and smoother intervention to stabilise the supply of ETS2 allowances.