The Czech Republic in the EU ETS

Sandbag argues that the Czech Republic could reap advantages from backing an enhanced Market Stability Reserve (MSR), with an early start, and the backload and unallocated allowances prevented from coming to market.
We first argue why Czech Republic should reconsider its position on the MSR. Then we present strong evidence based on ETS data, revealing the various ways in which Czech Republic’s industry is not only protected against any effects of the MSR, but can actually capitalise on these effects. We finally present more detailed information about how the proposed ETS reform would function in the concluding section of this briefing.