Climate Action Commissioner Connie Hedegaard said: "The good news is that emissions declined faster than in previous years even as Europe’s economies started to recover from the recession. However, there is still a growing surplus of emission allowances that risks undermining the orderly functioning of the carbon market. The Commission has taken action to address this with the already adopted back-loading measure. But as this is only a temporary measure, the Commission has proposed to establish a market stability reserve. Now it is up to the European Parliament and the Council to take it forward and move ahead swiftly in their discussions."
EU's greenhouse gas emissions from installations participating in the EU's Emissions Trading System (ETS) have decreased at least by 3% last year, according to data from the Union Registry.
This means more emissions were cut last year than in each previous year and proves once again that emissions can be cut without sacrificing the economy. However, a surplus of emissions allowances persists in the system. This underlines the need to swiftly adopt and implement the Commission's proposal to create market stability reserve mechanism to improve the long-term functioning of the carbon market.