Command-and-control measures pending negative ETS reform vote

The document warns that the EU Emissions Trading System (EU ETS) is dysfunctional due to a surplus of over 2 billion tonnes of pollution permits, which has caused carbon prices to drop from 30 euros in 2008 to approximately 7 euros. It advocates for the immediate implementation of a market stability reserve to manage this overcapacity, noting that failure to reform the market could lead to a shift toward national-level command-and-control measures and undermine global carbon trading systems and the Paris climate summit. However, it cautions that a reserve is only a temporary cushion and that a permanent cancellation of surplus permits is necessary to protect future climate targets.

• The EU Emissions Trading System (EU ETS) is suffering from a massive oversupply of pollution permits exceeding 2 billion tonnes, or more than one year's emissions, contributing to a price drop from approximately 30 euros in 2008 to around 7 euros.
• A proposed market stability reserve is intended to temporarily manage overcapacity, which could reach 4.5 billion tonnes by 2020, by preventing 900 million backloaded allowances from returning to the market.
• While a market stability reserve provides a temporary solution, it may eventually release surplus allowances back into the market, meaning a permanent cancellation of permits is required to maintain the integrity of EU climate targets.

APA

CMW (2015). Command-and-control measures pending negative ETS reform vote. Carbon Market Watch. https://carbonmarketwatch.org/2015/02/05/command-and-control-measures-pending-negative-ets-reform-vote/

Chicago

CMW. Command-and-control measures pending negative ETS reform vote. Carbon Market Watch, 2015. https://carbonmarketwatch.org/2015/02/05/command-and-control-measures-pending-negative-ets-reform-vote/.

Wikipedia

{{cite press release |last1=CMW |title=Command-and-control measures pending negative ETS reform vote |publisher=Carbon Market Watch |date=5 February 2015 |url=https://carbonmarketwatch.org/2015/02/05/command-and-control-measures-pending-negative-ets-reform-vote/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{cmw2015commandandcontrol, author = {CMW}, title = {{Command-and-control measures pending negative ETS reform vote}}, publisher = {Carbon Market Watch}, year = {2015}, month = feb, url = {https://carbonmarketwatch.org/2015/02/05/command-and-control-measures-pending-negative-ets-reform-vote/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }