ETS2: ENVI Committee voted in favor the amendment of the Market Stability Reserve, but introduced changes

The Commission’s proposal to amend the EU emissions trading system (ETS2) market stability reserve for the buildings, road transport and other sectors to shield households, is adopted the ENVI Committee, by 58 votes in favor, 9 against and 9 abstentions, during an ordinary meeting on 15/04/2026, in Brussels.

Thereby, the MEPs agreed in principle with the proposal to "allow the release of more allowances when the cost of carbon exceeds €45 per tonne CO2 equivalent (in 2020 prices)". However, they want the Commission to "react more quickly to sudden price spikes and to start releasing allowances from the MSR after one month instead of two as proposed by the Commission".

MEPs also voted in favor (55 votes, and 13 against, 8 abstentions) of one compromise amendment which aims "to introduce a gradual invalidation of unused allowances in the reserve and to shorten the reaction time for releasing allowances to the market", specified the European Parliament.

It means that rather than cancelling all unused allowances transferred to the MSR from 01/01/2031, as proposed by the Commission, the MEPs want "a gradual process, with 50% of the unused allowances being void from 01/01/2034 and all remaining unused MSR allowances cancelled from 01/01/2036.

They also want the Commission to assess the appropriateness of this approach within four years after the launch of ETS2. In addition, the Commission would have to "assess whether to prolong the current cap of €45 per tonne CO2 beyond 2029 and to index it to 2026 not 2020 prices".

It will be followed by a plenary vote in April and by negotiations with the Council to find an agreement.