ETS2: Parliament adopts its position to amend the market stability reserve and calls for quicker response

European Parliament adopted its position on the Commission's proposal to amend the market stability reserve for the new emissions trading system for road transport and buildings (ETS2), during a plenary session in Strasbourg on 30/04/2026, by 433 votes for, 120 against and with 91 abstentions.

MEPs agreed in principle 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 want :
• "50% of the unused allowances being void from 01/01/2034 ;
• and all remaining unused MSR allowances cancelled from 01/01/2036 rather than cancelling all unused allowances transferred to the MSR from 01/01/2031, as is foreseen in the current legislation".

In addition, they ask the Commission to "assess the appropriateness of this approach within four years after the launch of ETS2". The report also asks the Commission "to assess whether to prolong the…