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

Document TA-10-2026-0278 · P10_TA(2026)0278 · PE789.007

Kind
Adopted text TA-10-2026-0278
Date
15 September 2026
Dossier
2026/0085(COD)
More facts (3)
Voted
  • 15 Sept 2026 (adopted text) Passed 367 for, 240 against, 59 abstained
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Subject matter
ENV
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In short

A summary of the text written by AI; ¶ opens the paragraph it rests on.

AI: In short Written by AI from the official text — check the source · deepseek-flash · 18 Sept 2026

Parliament's amended version of a proposed decision amending Decision (EU) 2015/1814 on the market stability reserve of the EU Emissions Trading System. It changes the threshold above which allowances held in the reserve are invalidated, and sets dates for when the new threshold applies. Under the amended rules, allowances held in the reserve above 400 million cease to be valid from 2023 until 31 January 2027. From 1 February 2027, allowances held in the reserve above 650 million cease to be valid. The amendments also update the recitals to refer to the Paris Agreement, the first global stocktake and the United Arab Emirates Consensus, and to the historical oversupply in the EU ETS.

Key points

  1. The amended recitals state that the Paris Agreement entered into force in November 2016 and that parties agreed to hold the global average temperature increase to well below 2 °C and pursue efforts to limit it to 1,5 °C.
  2. The recitals add that the first global stocktake outcome was adopted on 13 December 2023 in Dubai, where parties resolved to accelerate efforts to limit the temperature increase to 1,5 °C and adopted the United Arab Emirates Consensus.
  3. The recitals state that the market stability reserve was established to address the historical oversupply in the EU ETS and the risk of supply and demand imbalances, improving the market's resilience to shocks.
  4. The recitals say the aim is to ensure the orderly functioning of the carbon market and the reserve, increase long-term market predictability, and align allowances with the Union's 2040 and 2050 climate targets.
  5. The recitals state that allowances held in the reserve above 650 million should be considered invalid as of 1 March 2027.
  6. The amendment deletes the provision that would have added a paragraph to Article 5 of Decision (EU) 2015/1814 and the provision that Article 1(5a) would cease to apply from the date of entry into force of the act.
  7. A new Article 1a replaces Article 1(5a): unless otherwise decided in the first review under Article 3, from 2023 until 31 January 2027 allowances held in the reserve above 400 million are no longer valid.
  8. From 1 February 2027, allowances held in the reserve above 650 million are no longer valid.
  9. The citation is amended so that the Committee of the Regions is consulted rather than its opinion being had regard to.

Who is affected

  • Participants in the EU Emissions Trading System, for whom the threshold above which reserve allowances are invalidated changes.
  • The market stability reserve, whose invalidation rules and thresholds are amended.

Figures and deadlines

  • 400 million allowances — threshold above which reserve allowances are no longer valid from 2023 until 31 January 2027.
  • 650 million allowances — threshold above which reserve allowances are no longer valid from 1 February 2027.
  • 1 March 2027 — date from which allowances above 650 million should be considered invalid.
  • 31 January 2027 — end of the period in which the 400 million threshold applies.
  • 1 February 2027 — start of the period in which the 650 million threshold applies.
  • November 2016 — entry into force of the Paris Agreement.
  • 13 December 2023 — adoption of the first global stocktake outcome in Dubai.

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Committee on the Environment, Climate and Food Safety

Amendments adopted by the European Parliament on 15 September 2026 on the proposal for a decision of the European Parliament and of the Council amending Decision (EU) 2015/1814 as regards ceasing the invalidation of allowances in the market stability reserve (COM(2026)0153 – C10-0093/2026 – 2026/0085(COD))

(Ordinary legislative procedure: first reading)

Amendment 1

Proposal for a decision

Citation 5

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
Having regard to the opinion of the Committee of the Regions2 ,After consulting the Committee of the Regions,
2 OJ C , , p. .

Amendment 2

Proposal for a decision

Recital 1

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(1) The Paris Agreement adopted under the United Nations Framework Convention on Climate Change, approved on behalf of the European Union by Council Decision (EU) 2016/18413 , (the ‘Paris Agreement’) entered into force in November 2016. The Parties to the Paris Agreement have agreed to hold the increase in the global average temperature to well below 2 °C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1,5 °C above pre-industrial levels.(1) The Paris Agreement adopted under the United Nations Framework Convention on Climate Change (UNFCCC), approved on behalf of the European Union by Council Decision (EU) 2016/18413 , (the ‘Paris Agreement’) entered into force in November 2016. The Parties to the Paris Agreement have agreed to hold the increase in the global average temperature to well below 2 °C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1,5 °C above pre-industrial levels. That commitment has been reinforced with the adoption under the UNFCCC of the outcome of the first global stocktake on 13 December 2023 in Dubai, in which the Conference of the Parties to the UNFCCC, serving as the meeting of the Parties to the Paris Agreement, resolved to accelerate efforts to limit the temperature increase to 1,5 °C and adopted the United Arab Emirates Consensus.
3 Council Decision (EU) 2016/1841 of 5 October 2016 on the conclusion, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (OJ L 282, 19.10.2016, p. 1, ELI: http://data.europa.eu/eli/dec/2016/1841/oj).3 Council Decision (EU) 2016/1841 of 5 October 2016 on the conclusion, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (OJ L 282, 19.10.2016, p. 1, ELI: http://data.europa.eu/eli/dec/2016/1841/oj).

Amendment 3

Proposal for a decision

Recital 2

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(2) Decision (EU) 2015/1814 of the European Parliament and of the Council4 established a market stability reserve in order to address the risk of supply and demand imbalances in the European carbon market and to improve its resilience to shocks.(2) Decision (EU) 2015/1814 of the European Parliament and of the Council4 established a market stability reserve in order to address the historical oversupply that had accumulated in the system for greenhouse gas emission allowance trading within the Union (EU ETS), established by Directive 2003/87/EC of the European Parliament and of the Council4a, and to address the risk of supply and demand imbalances in the European carbon market, thereby improving its resilience to shocks.
4 Decision (EU) 2015/1814 of the European Parliament and of the Council of 6 October 2015 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and amending Directive 2003/87/EC (OJ L 264, 9.10.2015, p. 1, ELI: http://data.europa.eu/eli/dec/2015/1814/oj).4 Decision (EU) 2015/1814 of the European Parliament and of the Council of 6 October 2015 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and amending Directive 2003/87/EC (OJ L 264, 9.10.2015, p. 1, ELI: http://data.europa.eu/eli/dec/2015/1814/oj).
4a Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32, ELI: http://data.europa.eu/eli/dir/2003/87/oj).

Amendment 4

Proposal for a decision

Recital 3

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(3) An analysis of the orderly functioning of the European carbon market and the market stability reserve carried out in accordance with Article 3 of Decision (EU) 2015/1814 indicates that, in order to increase long-term market predictability, allowances held in the reserve above 400 million allowances should no longer be considered invalid.(3) To ensure the orderly functioning of the European carbon market and of the market stability reserve and to increase long-term market predictability, while also ensuring the contribution and alignment of allowances to the Union’s 2040 and 2050 climate targets and protecting against the risk of supply and demand imbalances of allowances on the market and in the market stability reserve, allowances held in the reserve above 650 million allowances should be considered invalid as of 1 March 2027.

Amendment 5

Proposal for a decision

Article 1 – paragraph 1

Decision (EU) 2015/1814

Article 5 – paragraph 2

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
In Article 5 of Decision (EU) 2015/1814, the following paragraph is added:deleted
Article 1(5a) shall cease to apply from [insert date of entry into force of this act].

Amendment 8

Proposal for a decision

Article 1 a (new)

Decision (EU) 2015/1814

Article 1 – paragraph 5 a

Amendment: Present text and Amendment
Present textAmendment
Article 1 a (new)
"In Article 1 of Decision (EU) 2015/1814, paragraph 5a is replaced by the following:
5a. Unless otherwise decided in the first review carried out in accordance with Article 3, from 2023 allowances held in the reserve above 400 million allowances shall no longer be valid.‘5a. Unless otherwise decided in the first review carried out in accordance with Article 3, from 2023 until 31 January 2027 allowances held in the reserve above 400 million allowances shall no longer be valid.
From 1 February 2027, allowances held in the reserve above 650 million allowances shall no longer be valid.’"

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Permalink
https://news.eu-parl.st-solutions.dev/texts/TA-10-2026-0278
Official source
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Licensed CC BY 4.0.
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25 September 2026

Cite as

European Parliament (2026). “Market stability reserve for the EU Emissions Trading System (EU ETS): ceasing the invalidation of allowances”. Text, 15 September 2026. docId TA-10-2026-0278, reference TA10-0278/2026. EU Parl Watch Research. https://news.eu-parl.st-solutions.dev/texts/TA-10-2026-0278 (retrieved 25 September 2026). Official source: The text on the European Parliament’s website, https://www.europarl.europa.eu/doceo/document/TA-10-2026-0278_EN.html. Data: EP Open Data API: document record, https://data.europarl.europa.eu/api/v2/documents/TA-10-2026-0278 (CC BY 4.0).
BibTeX 
@misc{epw-text-ta-10-2026-0278,
  author = {{European Parliament}},
  title = {{Market stability reserve for the EU Emissions Trading System (EU ETS): ceasing the invalidation of allowances}},
  year = {2026},
  date = {2026-09-15},
  howpublished = {\url{https://news.eu-parl.st-solutions.dev/texts/TA-10-2026-0278}},
  url = {https://news.eu-parl.st-solutions.dev/texts/TA-10-2026-0278},
  urldate = {2026-09-25},
  publisher = {EU Parl Watch Research},
  note = {Text. docId TA-10-2026-0278, reference TA10-0278/2026. Official source: https://www.europarl.europa.eu/doceo/document/TA-10-2026-0278\_EN.html. Data: EP Open Data API: document record (CC BY 4.0)}
}