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2026/0085(COD)E1st reading – European Parliament

Market stability reserve for the EU Emissions Trading System (EU ETS): ceasing the invalidation of allowances

With the European Parliament, which is preparing its first-reading position.

Last active 11 Jun 2026

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What this bill does

In plain terms: what it changes and who it affects.

The proposal stops cancelling surplus EU carbon allowances held in the market stability reserve.

Who it affects

It affects companies covered by the EU Emissions Trading System and Member States relying on carbon market stability and auction revenues.

Core of the proposal
  • Ends the rule invalidating reserve allowances above 400 million.
  • Allows more allowances to remain in the market stability reserve.
  • Aims to provide a future liquidity buffer against market tightness.
  • Leaves the overall design of the market stability reserve unchanged.
Key provisions
Takes effect
The Decision enters into force on the third day following publication in the Official Journal of the European Union.
Articles changed · 1 across 1 law
  • Decision (EU) 2015/1814 (32015D1814)
    • art. 5: adds paragraph providing that Article 1(5a) ceases to apply from entry into force

Latest update

12 Jun 2026

The most recent development in this bill's progress.

1st reading – European Parliament → 1st reading – European Parliament

1st reading – European Parliament1st reading – European Parliament

Documents

1 recent

SourcesOEILEUR-LexEU Law Tracker