A mechanism deployed under the EU Emissions Trading System to remove a volume of carbon allowances from circulation in the market. This was a flexibile mechanism used to address a long-term buildup of surplus allowances that was keeping prices relatively low, weakening the price signal generated by the market. The MSR works by reducing the volume of allowances sold in regular auctions, according to agreed quantitative thresholds linked to the net supply of allowances in the market.
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The Carbonwise editorial team is formed of seasoned established industry writers and specialist journalists.
27 August 2026
In order to ensure the global reduction in GHG emissions, carbon reductions need to be permanent. Permanence is considered when approving a carbon offset project such as avoided deforestation.
27 July 2026
On 17th July, the European Commission unveiled its much-anticipated legislative proposal to overhaul the EU’s compliance carbon market, the EU Emissions Trading System (EU ETS).
23 July 2026
Know Your Client is a security procedure used in the financial sector when contracting to do business with a new counterparty.
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