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cepPolicyBrief
Climate
"Market Stability Reserve" for Emission Trading (Decision)
cepPolicyBrief
![Status](/typo3temp/assets/_processed_/4/e/csm_2_112db1265e.png)
The Market stability reserve is an instrument which fails to solve a problem that does not exist. Nevertheless, we do not expect it to have any significant negative consequences: Contrary to the Commission's view, the fact that the ETS has a fixed supply is not a problem. Quite the reverse; it has to be so in order that decisions are effectively controlled by the price. The market stability reserve does not have any substantial effect on the long-term price of allowances because the supply of allowances will not be permanently changed by putting them in the reserve.