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EU ETS outlook in Phase 4: Assessment of policy options for EU climate policy & ‘Preparing for the MSR review’

Energy, Environment and Climate
Date: Monday, 18 November 2019 13:00 - 16:00

Venue: Room Cattier, University Foundation, 11 rue d’Egmont, 1000 Brussels

This meeting is jointly organised by ERCST and Sitra (Finnish Innovation Fund) and aims at analysing the outlook for the EU ETS during Phase 4 (2021-2030). The intention is to promote a discussion among stakeholders on the future of the European carbon market, trying to assess what potential reforms might be needed to strengthen the EU ETS framework.

The key questions we will try to answer are:

  • is the EU ETS ‘fit for life’?

  • will it continue playing a key role in the EU decarbonisation strategy?

  • what reforms might be needed for it to remain a ‘cornerstone’ of the EU climate action?


To provide more clarity on these issues, the meeting will be divided in two parts, where two publications by ERCST and Sitra will be presented:

1. Paper presentation by Sitra ‘The role of the EU ETS in increasing EU climate ambition: Assessment of policy options’;

2. ERCST paper launch ‘Preparing the review of the Market Stability Reserve (MSR)’.

The first session will focus on some key policy options that might be taken during the EU ETS Phase 4, in order to align the EU ETS framework with the Paris Agreement targets. The discussion will be based on Sitra’s publication ‘The role of the EU ETS in increasing EU climate ambition: Assessment of policy options’.

The second session will focus on the review of the MSR scheduled in 2021, with the launch of ERCST paper ‘Preparing the review of the MSR’. This paper aims at providing an independent contribution to the policy debate, and outlines what elements the MSR review should include, how it should be structured, and what indicators and data should be monitored towards 2021.


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