Urgent call to veto Commission proposal on releasing allowances from the market stability reserve to finance REPowerEU measures

A coalition of NGOs argues that releasing 200-250 million allowances from the Market Stability Reserve to generate EUR 20 billion for REPowerEU would increase atmospheric emissions and fund fossil fuel infrastructure, thereby undermining the European Green Deal and the Paris Agreement.

• The proposal to release 200-250 million allowances from the reserve that would otherwise be cancelled would result in an equivalent amount of additional emissions entering the atmosphere.
• Of the EUR 225 billion portfolio for REPowerEU measures, EUR 11.5 billion is expected to be invested in oil and gas infrastructure, creating a long-term lock-in to fossil fuels.
• The proposal to use carbon market revenues for fossil fuel infrastructure contradicts the objectives of the Market Stability Reserve, the EU Emissions Trading System, and the Commission's own Fit For 55 revision proposals.
• Political interference in the market to generate funding has already caused EU Allowance (EUA) prices to drop by 12.5%, which reduces the total revenue available to Member States and worsens the EUR 2.4 trillion investment gap for the energy transition.

APA

Carbon Market Watch (2022). Urgent call to veto Commission proposal on releasing allowances from the market stability reserve to finance REPowerEU measures. https://carbonmarketwatch.org/wp-content/uploads/2022/09/NGO-Urgent-alert-on-MSR-proposal-in-REPowerEU.pdf

Chicago

Carbon Market Watch. Urgent call to veto Commission proposal on releasing allowances from the market stability reserve to finance REPowerEU measures. 2022. https://carbonmarketwatch.org/wp-content/uploads/2022/09/NGO-Urgent-alert-on-MSR-proposal-in-REPowerEU.pdf.

Wikipedia

{{cite press release |author=Carbon Market Watch |title=Urgent call to veto Commission proposal on releasing allowances from the market stability reserve to finance REPowerEU measures |date=May 2022 |url=https://carbonmarketwatch.org/wp-content/uploads/2022/09/NGO-Urgent-alert-on-MSR-proposal-in-REPowerEU.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{carbonmarketwatch2022urgent, author = {{Carbon Market Watch}}, title = {{Urgent call to veto Commission proposal on releasing allowances from the market stability reserve to finance REPowerEU measures}}, publisher = {Carbon Market Watch}, year = {2022}, month = may, url = {https://carbonmarketwatch.org/wp-content/uploads/2022/09/NGO-Urgent-alert-on-MSR-proposal-in-REPowerEU.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }