Figure 6: EU ETS Carbon Prices
EUA Spot Price (€/te CO
Source: ICIS Heren, Intercontinental Exchange
The weakness of carbon prices has provoked sustained efforts at EU level to reform the ETS in its current
Phase III (2013-20) and to reduce the over-supply of allowances. In September 2015, the EU finally approved the
Market Stability Reserve (MSR) designed to reduce the over-supply, which will take effect from 1 January 2019.
Legislative scrutiny also began in 2015 on the draft proposal to revise the existing ETS Directive, which will govern
Phase IV from 2021 to 2030, to tighten the overall cap and to reduce the degree of carbon leakage support to
energy-intensive industries within the ETS.