EMISSIONS: EU States Agree Position On MSR Permit Supply

EU member states agreed their negotiating position on changes to the MSR moving from annual invalidation above 400mn allowances to a temporary suspension of invalidation followed by an 800mn threshold from 2031, * The agreed position would suspend allowance invalidation until end-2030, allowing the MSR to retain allowances above the current 400mn threshold. * Previously, allowances held above 400mn in the MSR were invalidated each year on 1 January. * From 2031, an 800mn-allowacne threshold would apply, with allowances above the limit being invalidated. * The 800mn threshold would then decline each year, providing additional assurances that the reserve's allowance pool will gradually tighten. * This stance had been previously proposed by the Irish Presidency. * The MSR is designed to manage surplus allowances and provide a supply buffer in case of price shocks. * Member states must still negotiate with the European Parliament on the final rules.