ECR MEP Anna Zalewska criticises today’s vote in the Committee on Environment, Climate and Food Safety (ENVI) on the revision of the Market Stability Reserve (MSR) for ETS2, warning that the outcome risks undermining price stability and increasing costs for European citizens and businesses.

The report adopted by the committee reintroduces the cancellation of allowances from the reserve from 2034 onwards. For the ECR Group, this is a clear step backwards compared to the European Commission’s original proposal.

Zalewska, who is Shadow Rapporteur for the European Conservatives and Reformists Group, said:
“This report moves in the wrong direction. The Commission at least recognised the need to make ETS2 more flexible and to contain price increases. Parliament should have built on that. Instead, it has weakened key safeguards for citizens.”

She added:
“Allowances in the reserve exist for a reason: to stabilise the system and prevent excessive price spikes. Cancelling them risks driving up the cost of heating and transport for ordinary Europeans. That is not climate policy. It is policy at the expense of citizens and businesses.”

The Commission proposal aimed to address concerns about rising carbon prices by introducing greater flexibility in the functioning of the MSR, including the possibility to release additional allowances in case of excessive price increases. It also removed the automatic cancellation mechanism, recognising the need to preserve the reserve as a tool to stabilise the market.

By contrast, the ENVI report partially reinstates the cancellation of allowances and weakens the capacity of the system to respond to price shocks.

“The ECR Group considers this approach misguided, particularly at a time when households and businesses are already under significant economic pressure”, Zalewska said.

The ECR Group has consistently called for a more fundamental reassessment of ETS2, including a possible delay of its entry into force and stronger safeguards against excessive costs.

“Ahead of the plenary vote, we will table amendments to remove the cancellation mechanism and to strengthen the system’s ability to respond to price volatility”, Zalewska concluded.