Market Stability Reserve for ETS2: adoption of the Commission's proposal by the Council "without changes"

The Council adopted its position on a targeted amendment of the Market Stability Reserve for the new emissions trading system (ETS2) for buildings, road transport and other sectors", announced the European instance, on 18/02/2026.

The Commission proposal, (adopted on 27/11/2025), "was supported by the Council without changes

"The amendment aims to ensure a better price stability and predictability for a smoother start of ETS2 in 2028", specified the Council, which added that "the amendment does not change the overall design of the Market Stability Reserve".

According to Maria Panayiotou, Minister of Agriculture, Rural Development and Environment of Cyprus, "the Council’s position on adjusting the Market Stability Reserve — the safety valve of the system — sends a clear signal that the EU is committed to a stable and predictable carbon market".

"To improve longer-term market predictability and confidence among market participants, the Market Stability Reserve will be extended beyond 2030. The 600M allowances held in the reserve — equivalent to around ten years of required ETS2 emission…