EC: Market Stability Reserve amended to support a smoother launch of ETS 2

The Commission adopted, on 27/11/2025,a proposal to introduce targeted amendments to the Market Stability Reserve (MSR) that would guarantee stronger intervention in case of high carbon prices and volatility in the future ETS 2 carbon market. Should the prices go above a certain level, the MSR would be enabled to operate in the longer term to ensure earlier and smoother action. The MSR is a European reserve made of non auctioned ETS allowances in the past years, that can be reinjected to ease the carbon markets in case of strong demand and higher prices.

This proposal responds to the concerns expressed by Member States and MEPs on potential increase and volatility of prices due to the entry into force of the ETS2 carbon market, on road transport and buildings.

“Today, we are delivering on the commitments we announced in October. These measures further strengthen stability and affordability within ETS2 and set us on a more predictable path toward a low-carbon future. We are setting the right conditions to keep prices in check and intervene swiftly if they go too high", declared…