Diario Oficial de la Unión Europea del 15/5/2023 - Comunicaciones e Informaciones
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Source: Diario Oficial de la Unión Europea - Comunicaciones e Informaciones
C 172/2
EN
Official Journal of the European Union
15.5.2023
2. FUNCTIONING OF THE MARKET STABILITY RESERVE
The Market Stability Reserve functions automatically when the total number of allowances in circulation is outside of the set range. Allowances are withdrawn from the auction volume and placed in the Reserve if the total number of allowances in circulation exceeds the threshold of 833 million. The intake rate of the Reserve is set at 24 % of the total number of allowances in circulation. If the total number of allowances in circulation is less than the threshold of 400 million, 100 million allowances are released from the Reserve and auctioned. Allowances are either placed in or released from the Reserve over the course of 12 months 4.
Under Article 15 of Decision EU 2015/1814 and on the basis of this Communication, 24 % of the total number of allowances in circulation on 31 December 2022 will be placed in the Reserve over a period of 12 months, starting on 1 September 2023. A corresponding number of allowances will be deducted from the auction volumes of EU Member States and the three EEA-EFTA countries Iceland, Liechtenstein and Norway, and of the United Kingdom in respect of the generation of electricity in Northern Ireland, in line with their respective auction shares.
Under Article 15 of Decision EU 2015/1814, until 31 December 2025, allowances distributed for the purposes of solidarity and growth in the EU ETS 5 are not included in the calculation of the relevant shares for the purposes of the Market Stability Reserve.
Under Article 15a of Decision EU 2015/1814, from 2023 onwards, any allowances held in the Market Stability Reserve above the previous years auction volume are no longer valid. This Communication is thus the first publication of the total number of allowances in circulation that details how many allowances became invalid.
The next years Communication on the total number of allowances in circulation will take into account two important developments. Firstly, the amendments of Decision EU 2015/1814 as part of the Fit for 55 legislative package to deliver the European Green Deal, which will apply from 2024. Secondly, Regulation EU 2023/435 6 adopted in February 2023.
Under the title REPowerEU, this Regulation constitutes part of the EUs response to the energy crisis. Among other measures, it amends Directive 2003/87/EC to derogate from Article 15a of Decision 2015/1814 by using 27 million unallocated allowances in the Market Stability Reserve for the Innovation Fund, from the total quantity that would otherwise be invalidated over the period until 31 December 2030.
3. TOTAL NUMBER OF ALLOWANCES IN CIRCULATION
Under Article 14 of Decision EU 2015/1814, the total number of allowances in circulation shall be the cumulative number of allowances issued in the period since 1 January 2008, including the number issued pursuant to Article 132 of Directive 2003/87/EC and international credits exercised by installations under the EU ETS in respect of emissions up to 31 December of that given year, minus the cumulative tonnes of verified emissions from installations under the EU ETS between 1 January 2008 and 31 December of that same given year, any allowances cancelled pursuant to Article 124 of Directive 2003/87/EC and the number of allowances in the Market Stability Reserve.
In short, the total number of allowances in circulation TNAC relevant for the operation of the Market Stability Reserve is calculated using the formula:
TNAC = Supply Demand + Allowances in the Market Stability Reserve The three elements are described in detail in this Communication. An overview of all figures is presented in the table at the end of the document.
Under Article 101 of Directive 2003/87/EC, the Market Stability Reserve covers allowances for stationary installations.
Allowances issued in respect of aviation and verified aviation emissions are therefore not included in the context of this years publication.
4 Corresponding to the intake rate of 2 % per month.
5 Under Article 102, point b of Directive 2003/87/EC.
6 Regulation EU 2023/435 of the European Parliament and of the Council of 27 February 2023 amending Regulation EU 2021/241
as regards REPowerEU chapters in recovery and resilience plans and amending Regulations EU No 1303/2013, EU 2021/1060 and EU 2021/1755, and Directive 2003/87/EC OJ L 63, 28.2.2023, p. 1.
