ETS : ENVI Committee adopts the provisional agreement raising the invalidation threshold in the MSR

MEPs adopt the text of the provisional agreement reached between Parliament and the Council on the Commission’s proposal to amend the EU ETS market stability reserve, raising the invalidation threshold from 400 to 700 million allowances, by 49 votes in favour, 12 against and 20 abstentions, during an ENVI Committee meeting, held in Brussels on 4 November 2026.

The Commission proposed to stop the invalidation mechanism immediately and allow an unlimited number of additional allowances to be held in reserve to support market stability.

For their part, the co-legislators proposed to maintain the mechanism but to raise the invalidation threshold, they said on 21 October. The aim is to “maintain a sufficiently large buffer to absorb supply and demand imbalances, while avoiding the excessive…