Comment | Published:

New EU ETS Phase 4 rules temporarily puncture waterbed

Nature Climate Changevolume 8pages262264 (2018) | Download Citation

The new rules of the EU ETS will fundamentally change its character. The long-term cap on emissions will become a function of past and future market outcomes, temporarily puncturing the waterbed and having retroactive impacts on GHG abatement from overlapping policies.

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Change history

  • 15 February 2019

    In the version of this Comment originally published, the scenario in which the market stability reserve (MSR) takes in allowances for seven years was calculated using incorrect x and y values in the formula described in the caption of Fig. 2; the red bars in Fig. 2 have now been updated. In the sentence “each subsequent year the number of allowances auctioned is reduced by 24% (12% after 2024) of the size of the bank” the year should have been 2023. These errors have now been corrected.


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I thank J. Jarke, S. Petrick and M. Willner for helpful comments.

Author information


  1. Department of Socioeconomics, University of Hamburg, Hamburg, Germany

    • Grischa Perino


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The author declares no competing interests.

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Correspondence to Grischa Perino.

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