EU ETS: 190 million allowances to be placed into the MSR between September 2026 and August 2027

A total of 190 494 202 allowances will be placed in the Market Stability Reserve over a 12-month period, from 01/09/2026 to 31/08/2027, according to a Communication on the total number of allowances in circulation (TNAC) on the European carbon market, adopted by the European Commission on 29/05/2026.

"A decrease in the auction volumes will be reflected in the auction calendars that will be adopted around July 2026", the Commission said.

"The annual publication of the TNAC plays an important role in the functioning of the MSR. It determines whether allowances are withdrawn from the auction volume and placed in the MSR or released from the MSR and auctioned. The MSR Decision (2015/1814) requires that every year, the TNAC Communication is adopted by 01/06", also specifies the Commission.

On 01/01/2026, there were 400 million allowances in the MSR. Allowances held in the MSR above this level are no longer valid.

"On April 2026, the Commission has proposed an amendment to the MSR to stop the invalidation mechanism. Until this amendment enters into force, the number of allowances placed…