Assocarta

Italian paper association demands overhaul of EU carbon market reserve

Assocarta, the Italian paper industry association, has urged the European Commission and the European Parliament's Environment Committee to radically reform the Market Stability Reserve (MSR), arguing it has inflated EU carbon prices by up to 300% relative to other regions. The call follows a draft resolution adopted by the Environment Committee on 10 September 2026 that raises the MSR's allowance threshold but keeps its allowance-removal mechanism, which Assocarta says fails to address industry competitiveness concerns.

Why this mattersHigher and more volatile EU carbon costs directly raise energy-intensive papermakers' input costs, feeding through to containerboard and packaging paper prices.

• European Parliament's Environment Committee adopted a draft resolution on the Market Stability Reserve on 10 September 2026.
• Assocarta says the MSR has raised European CO2 prices by as much as 300% versus other carbon-pricing regions.
• The committee proposal raises the threshold for allowances held in the reserve but retains the allowance-removal mechanism.
• Assocarta Director General Massimo Medugno called for the proposals to be rejected and for the MSR to be radically transformed.
• The association warns of de-industrialisation risk as production could shift to countries without comparable CO2 obligations.

Relevant to you? Yes No