Open letter on MSR2 reform and suggestion to postpone ETS2

The letter argues against postponing the ETS2 and opposes changes to the MSR2, specifically the removal of the sunset clause, which the authors claim would increase emissions and jeopardize the Fit for 55 package. It emphasizes the need for robust carbon prices to drive decarbonization investments and calls for the Commission to ensure Member States strengthen national policies to compensate for any reduced effectiveness of a reformed ETS2.

• The authors oppose the postponement of the ETS2, arguing that delaying its introduction contradicts the goal of containing price levels because a more aggressive reduction in emissions will likely be required between 2028 and 2030.
• Proposed changes to the MSR2, particularly the removal of the sunset clause, are viewed as dangerous because they could significantly increase the volume of allowances in the system, thereby increasing emissions in ETS2 sectors and threatening the Fit for 55 package.
• A robust carbon price is deemed essential to ensure the competitiveness of decarbonization technologies and to secure investments in electricity grid flexibility, building renovations, and cleantech manufacturing, especially given the volatility of international fossil fuel prices.
• The authors warn that MSR2 reforms could lead to falling carbon prices in EU countries with existing national carbon prices, potentially undermining climate action and making it harder for Member States to meet Effort Sharing Regulation goals without increased national efforts to reduce fossil fuel demand.

APA

Carbon Market Watch (2025). Open letter on MSR2 reform and suggestion to postpone ETS2. https://carbonmarketwatch.org/wp-content/uploads/2025/11/Letter-on-ETS2-and-MSR2-6-Nov-25.pdf

Chicago

Carbon Market Watch. Open letter on MSR2 reform and suggestion to postpone ETS2. 2025. https://carbonmarketwatch.org/wp-content/uploads/2025/11/Letter-on-ETS2-and-MSR2-6-Nov-25.pdf.

Wikipedia

{{cite press release |author=Carbon Market Watch |title=Open letter on MSR2 reform and suggestion to postpone ETS2 |date=6 November 2025 |url=https://carbonmarketwatch.org/wp-content/uploads/2025/11/Letter-on-ETS2-and-MSR2-6-Nov-25.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{carbonmarketwatch2025open, author = {{Carbon Market Watch}}, title = {{Open letter on MSR2 reform and suggestion to postpone ETS2}}, publisher = {Carbon Market Watch}, year = {2025}, month = nov, url = {https://carbonmarketwatch.org/wp-content/uploads/2025/11/Letter-on-ETS2-and-MSR2-6-Nov-25.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }