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Market stability reserve for the buildings, road transport and additional sectors

Document TA-10-2026-0139 · P10_TA(2026)0139 · PE783.023

Kind
Adopted text TA-10-2026-0139
Date
29 April 2026
Dossier
2025/0380(COD)
More facts (3)
Voted
  • 29 Apr 2026 (adopted text) Passed 433 for, 120 against, 91 abstained
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Subject matter
ENV
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In short

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Parliament's amended version of the proposed decision amending the market stability reserve for buildings, road transport and additional sectors. It adjusts the validity of allowances in the reserve, strengthens the price stability mechanism, and requires impact assessments.

Key points

  1. Allowances in the reserve remain valid until 31 December 2033, and partially until 31 December 2035; from 1 January 2034, 50% of unreleased allowances become invalid, and from 1 January 2036, the rest do.
  2. The Commission must conduct an impact assessment within four years of ETS2 operation, including distributional impacts, and evaluate whether to invalidate remaining allowances, possibly with a legislative proposal.
  3. The price stability mechanism is strengthened: releases from the reserve must start within 30 days after conditions are met, and if applied twice in 12 months, the additional release occurs twice.
  4. Member States should use revenues from auctioning allowances released from the reserve to complement their Social Climate Plans, and the Commission should identify sectoral decarbonisation measures and better use of ETS revenues.
  5. The Commission should consider strengthening and prolonging the excessive price increase mechanism of EUR 45 beyond 2029, and assess options like allowing Member States to temporarily exempt residential buildings from ETS2 under conditions.
  6. The Commission should consider prolonging the EIB Frontloading Facility and increasing the Social Climate Fund budget to support households in line with ETS2 price evolution.
  7. The Commission should conduct an impact assessment of ETS2's social and climate impact, including distributional analysis of vulnerable households supported by the Social Climate Fund and EIB Frontloading Facility.

Who is affected

  • Member States: must use auction revenues from reserve releases for Social Climate Plans and remain vigilant against green funding gaps.
  • Households: may receive financial support from the Social Climate Fund and EIB Frontloading Facility, with possible direct support like climate dividends.
  • Commission: tasked with impact assessments and considering additional measures for price stability and social fairness.

Figures and deadlines

  • 31 December 2033: allowances remain valid until then; 31 December 2035: partially valid until then.
  • 1 January 2034: 50% of unreleased allowances become invalid.
  • 1 January 2036: remaining unreleased allowances become invalid.
  • 30 days: releases from the reserve must start within this period.
  • EUR 45: excessive price increase mechanism set in 2026 prices, to be considered for strengthening.

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Jump to an amendment (10)

Committee on the Environment, Climate and Food Safety

Amendments adopted by the European Parliament on 29 April 2026 on the proposal for a decision of the European Parliament and of the Council amending Decision (EU) 2015/1814 as regards the market stability reserve for the buildings, road transport and additional sectors (COM(2025)0738 – C10-0320/2025 – 2025/0380(COD))

(Ordinary legislative procedure: first reading)

Amendment 1

Proposal for a decision

Recital 1 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(1a) The conclusions of the European Council of 12 December 2019 endorse the objective of achieving a climate-neutral Union by 2050, in line with the objectives of the Paris Agreement.

Amendment 2

Proposal for a decision

Recital 3

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(3) The analysis carried out of the expected functioning of the reserve, taking into account recent information, indicates that targeted amendments to some parameters would contribute to improving market predictability and to the stability of price movements in the early years of the new system.(3) The analysis carried out of the expected functioning of the reserve, taking into account recent information, indicates that targeted amendments to some parameters would contribute to improving market predictability and to the stability of price movements in the early years of the new system. In order for those amendments not to hinder the Union’s decarbonisation efforts, further action by the Member States is necessary. According to the European Central Bank, green investment in the Union remains below the levels required to meet the 2030 decarbonisation target. Therefore, Member States need to remain vigilant against the risk of a green funding gap.

Amendment 3

Proposal for a decision

Recital 3 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(3a) The implementation of the emissions trading system for the buildings, road transport and additional sectors needs to be accompanied by complementary decarbonisation measures which are the most effective tool for helping households reduce fossil fuel dependency and therefore mitigating the impact of the ETS2 on consumers, given that fuel demand in buildings and transport remains largely inelastic in the short term. Member States are obliged to use the revenues from the auction of allowances for the purposes pursuant to Article 30d(6) of Directive 2003/87/EC, giving priority to activities that can contribute to addressing the social aspects of emissions trading under ETS2. Therefore, it would be appropriate for Member States to use the revenues from the auctioning of allowances released from the reserve to complement their Social Climate Plans. It is equally important that the Commission complements its analysis of the final updated National Energy and Climate Plans by identifying, for each Member State, sectoral decarbonisation measures and a better use of ETS revenues that could help reduce the demand for ETS2 allowances. It is also important to strengthen the EIB Frontloading Facility and to consider additional measures to increase the budget of the Social Climate Fund to ensure that financial support is provided to households in a timely manner and at a level that reflects the evolution of the ETS2 prices. It is necessary for the Commission to consider prolonging the duration of the Social Climate Fund.

Amendment 4

Proposal for a decision

Recital 4

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(4) In order to increase long-term market predictability, the allowances placed in the reserve for the buildings, road transport and additional sectors that have not been released should remain valid beyond 31 December 2030.(4) In order to increase long-term market predictability, the allowances placed in the reserve for the buildings, road transport and additional sectors that have not been released should remain valid until 31 December 2033 and partially until 31 December 2035. Within four years of the start of the operation of ETS2, the Commission should conduct an impact assessment, including a distributional impact assessment, and an evaluation of the environmental, social and economic impact of the remaining allowances in the reserve.

Amendment 5

Proposal for a decision

Recital 6

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(6) In order to further improve its reactivity to unwarranted price fluctuations and increase market predictability, the mechanism to enhance price stability in the first three years of the emissions trading system for buildings, road transport and additional sectors should be strengthened in a careful manner. This could involve releasing a higher volume of allowances in the market. If the measure is applied twice during the same 12 months period, the additional release should occur twice.(6) In order to further improve its reactivity to unwarranted price fluctuations and increase market predictability, the mechanism to enhance price stability in the first three years of the emissions trading system for buildings, road transport and additional sectors should be strengthened in a careful manner. This could involve releasing a higher volume of allowances in the market without delay. If the measure is applied twice during the same 12 months period, the additional release should occur twice.

Amendment 6

Proposal for a decision

Recital 6 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(6a) Excessive allowance price levels within the emissions trading system for the buildings, road transport and additional sectors could still have disproportionate impacts on vulnerable households, while excessive price fluctuations might not be limited to an occurrence twice a year. In the context of the review of Directive 2003/87/EC of the European Parliament and of the Council, it is essential that further social safeguarding measures be considered, and it may be appropriate for stronger price curtailment instruments to be considered by the Commission to guarantee price stability in the long term. In this regard, the Commission could consider a list of options such as strengthening and prolonging beyond 31 December 2029 the excessive price increase mechanism of EUR 45 set in 2026 prices, and adapting the market stability reserve accordingly, including the frequency and volume of releases of allowances and the volume in the reserve, if necessary, assessing the feasibility of allowing Member States to temporarily not apply the system to residential buildings by way of derogation, provided that they demonstrate that they can achieve the effort-sharing targets by putting in place other measures and provided that they have transposed Directive (EU) 2024/1275 of the European Parliament and of the Council in national law, ensuring the possibility to use revenues from emissions trading for direct support, such as climate dividends, without having to prove a positive environmental impact or introducing other measures to minimise the cost passed through on vulnerable households. By 1 March 2027, those options need to be duly assessed by the Commission with regard to their social and environmental impacts while ensuring they would not be to the detriment of meeting the Union's climate goals as set out in Regulation (EU) 2021/1119 of the European Parliament and of the Council.

Amendment 7

Proposal for a decision

Recital 6 b (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(6b) Following the revision of the market stability reserve provided for in this amending Decision, it would be appropriate for the Commission to conduct an impact assessment of the emissions trading system for the buildings, road transport and additional sectors to assess its social impact and its impact on meeting the climate goals, as well as a distributional assessment of the number of vulnerable households for which support has been made available from the Social Climate Fund and the EIB Frontloading Facility by that date, including, as feasible, a breakdown by type of geographical area, by income distribution and by gender which needs to also consider additional measures to ensure both environmental integrity and social fairness within the ETS2.

Amendment 8

Proposal for a decision

Article 1 – paragraph 1 – point 1

Decision (EU) 2015/1814

Article 1a – paragraph 3

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(1) In paragraph 3, the second sentence is deleted;(1) In paragraph 3, the second sentence is replaced by the following:
‘From 1 January 2034, 50% of the allowances referred to in that subparagraph that have not been released from the reserve shall no longer be valid. From 1 January 2036, the remaining allowances referred to in that subparagraph that have not been released from the reserve shall no longer be valid.’;

Amendment 9

Proposal for a decision

Article 1 – paragraph 1 – point 4 a (new)

Decision (EU) 2015/1814

Article 1a – paragraph 7

Amendment: Present text and Amendment
Present textAmendment
(4a) In paragraph 7, the second sentence is replaced by the following:
The volumes to be released from the reserve shall be evenly distributed over a period of three months, starting no later than two months after the date on which the conditions were met according to the publication in that regard in the Official Journal of the European Union pursuant to Article 30h(8) of Directive 2003/87/EC.‘The volumes to be released from the reserve shall be evenly distributed over a period of three months, starting no later than 30 days after the date on which the conditions were met according to the publication in that regard in the Official Journal of the European Union pursuant to Article 30h(8) of Directive 2003/87/EC.’.

(32015D1814)

Amendment 10

Proposal for a decision

Article 1 a (new)

Decision (EU) 2015/1814

Article 3 – paragraph 1 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
Article 1a
In Article 3 of Decision (EU) 2015/1814, the following paragraph is added:
‘Within four years of the start of the operation of emissions trading for buildings, road transport and additional sectors set out in Chapter IVa of Directive 2003/87/EC, the Commission shall carry out an impact assessment, including a distributional impact assessment, and an evaluation of the environmental, social and economic impact of the remaining allowances in the reserve under Article 1a of this Decision, and determine the appropriateness of partially or entirely invalidating those allowances. That evaluation shall, where appropriate, be accompanied by a legislative proposal.’.

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Permalink
https://news.eu-parl.st-solutions.dev/texts/TA-10-2026-0139
Official source
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Licensed CC BY 4.0.
Retrieved
25 September 2026

Cite as

European Parliament (2026). “Market stability reserve for the buildings, road transport and additional sectors”. Text, 29 April 2026. docId TA-10-2026-0139, reference TA10-0139/2026. EU Parl Watch Research. https://news.eu-parl.st-solutions.dev/texts/TA-10-2026-0139 (retrieved 25 September 2026). Official source: The text on the European Parliament’s website, https://www.europarl.europa.eu/doceo/document/TA-10-2026-0139_EN.html. Data: EP Open Data API: document record, https://data.europarl.europa.eu/api/v2/documents/TA-10-2026-0139 (CC BY 4.0).
BibTeX 
@misc{epw-text-ta-10-2026-0139,
  author = {{European Parliament}},
  title = {{Market stability reserve for the buildings, road transport and additional sectors}},
  year = {2026},
  date = {2026-04-29},
  howpublished = {\url{https://news.eu-parl.st-solutions.dev/texts/TA-10-2026-0139}},
  url = {https://news.eu-parl.st-solutions.dev/texts/TA-10-2026-0139},
  urldate = {2026-09-25},
  publisher = {EU Parl Watch Research},
  note = {Text. docId TA-10-2026-0139, reference TA10-0139/2026. Official source: https://www.europarl.europa.eu/doceo/document/TA-10-2026-0139\_EN.html. Data: EP Open Data API: document record (CC BY 4.0)}
}