EU Adopts Plan Allowing Pollution Permits to Accumulate in Market Stability Reserve
The European Union adopted a plan on Wednesday concerning the Market Stability Reserve, a buffer mechanism that can inject or absorb free pollution permits to keep carbon prices from swinging too wildly. The action allows pollution permits to pile up in the reserve in a bid to placate industry concerns about carbon price volatility.
The Adopted Plan
The plan adopted on Wednesday concerns the Market Stability Reserve. According to the source material from Euobserver, the EU allows pollution permits to pile up in bid to placate industry.
Function of the Reserve
The Market Stability Reserve can inject or absorb free pollution permits to keep carbon prices from swinging too wildly. The mechanism serves as a buffer within the EU's emissions trading system.