--- title: Proposed Amendments Announced for EU Greenhouse Gas Emission Allowance Trading Directive description: Proposed Amendments Announced for EU Greenhouse Gas Emission Allowance Trading Directive --- [![](https://www.complianceandrisks.com/wp-content/themes/compliancerisk/inc/img/general/compliancelogo.svg)](https://www.complianceandrisks.com/) - Products Products - - [C2P](https://www.complianceandrisks.com/c2p-compliance-knowledge-management-platform/) - [Regulations Management](https://www.complianceandrisks.com/solutions/conquering-the-regulatory-avalanche/) - [Standards Management](https://www.complianceandrisks.com/solutions/standards/) - [Requirements Management](https://www.complianceandrisks.com/solutions/heres-the-regulation-whats-next/) - [Regulatory Topics](https://www.complianceandrisks.com/solutions/regulated-areas/) - [WFSGI Compliant Labelling Requirements Database](https://www.complianceandrisks.com/WFSGI/) - Services Services - [Market Access Service](https://www.complianceandrisks.com/solutions/grow-in-new-markets/) - [Regulatory Process Consulting](https://www.complianceandrisks.com/solutions/best-practices-in-compliance-processes/) - [Environmental, Health & Safety (EH&S)](https://www.complianceandrisks.com/solutions/ehs-and-your-legal-registers/) - [Managed Services](https://www.complianceandrisks.com/solutions/solutions-for-every-day/) - [Training and Systems Implementation](https://www.complianceandrisks.com/solutions/training-and-systems-implementation/) - [Ask Our Experts](https://www.complianceandrisks.com/solutions/your-compliance-question) - Resources News & Resources - [Blog](https://blog.complianceandrisks.com/news-resources?__hstc=67571022.c37393069837d66fdddfdab74b5ad3c6.1593078357468.1593078357468.1593078357468.1&__hssc=67571022.1.1593078357469&__hsfp=693435645) - [Commentary & Analysis](https://blog.complianceandrisks.com/commentary-analysis?__hstc=67571022.c37393069837d66fdddfdab74b5ad3c6.1593078357468.1593078357468.1593078357468.1&__hssc=67571022.1.1593078357469&__hsfp=693435645) - [COVID-19](https://www.complianceandrisks.com/covid-19/) - [Webinars](https://www.complianceandrisks.com/webinars/) - [White Papers & eBooks](https://www.complianceandrisks.com/whitepapers/) - [About](https://www.complianceandrisks.com/about/) Compliance & Risks - [About Us](https://www.complianceandrisks.com/about/) - [Industries](https://www.complianceandrisks.com/compliance-requirements-industries/) - [History](https://www.complianceandrisks.com/compliance-and-risks-history/) - [Careers](https://www.complianceandrisks.com/compliance-risks-careers/) - [Knowledge Partners](https://www.complianceandrisks.com/knowledge-partners/) - [Partners & Affiliates](https://www.complianceandrisks.com/becoming-a-compliance-risks-partner/) - [Get in touch](https://www.complianceandrisks.com/contact/) COVID-19 Regulatory Developments [Find Out More](https://www.complianceandrisks.com/covid-19/) - [Book a demo](https://www.complianceandrisks.com/book-a-demo/) - [Eng](https://complianceandrisks.com) - [日本語](http://complianceandrisks.jp/) ![](https://www.complianceandrisks.com/wp-content/themes/compliancerisk/inc/img/general/burger.svg) Search for: # Proposed Amendments Announced for EU Greenhouse Gas Emission Allowance Trading Directive --- ##### 30 January 2014 The European Union Parliament and Council have announced proposed amendments to the EU Greenhouse Gas Emissions Trading Scheme (EU ETS) Directive. The most significant of these changes would be the establishment of a 'Market Stability Reserve', in order to tackle structural supply-demand imbalances in the European Carbon Market.  The knock-on effect of this development would oblige Member States to auction all allowances that are not allocated free of charge, and which are not placed in the proposed Reserve. The Market Stability Reserve would operate by triggering adjustments to annual auction volumes in situations where the total number of allowances in circulation is outside a specific, pre-defined range - mitigating instability by adding to or releasing allowances from the Reserve as appropriate, depending on whether there is a temporary surplus or a temporary deficit in the market. The proposal has been submitted as part of the 2030 framework for Climate and Energy Policies, and as such, the Market Stability Reserve would start operating as of phase 4, from 2021 onwards. 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