Wednesday's proposal comes as a prelude to this summer's planned revision of the rules for the Emissions Trading System, or ETS. It also comes at a time when countries such as Italy and the Czech Republic have called for a pause in the entire ETS, which they claim is driving up energy prices.
What the Commission is now proposing is that emission allowances above a certain number (400 million) should remain in the so-called Market Stability Reserve (MSR) instead of being cancelled.
"This is an important first step in modernising our emissions market," says Climate Commissioner Wopke Hoekstra in a press release.
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