What changed
The text now states that allowances held in the reserve above 650 million are invalid from 1 March 2027, and that the 400 million threshold applies until 28 February 2027. #2 It adds recitals on the Paris Agreement, the market stability reserve and long-term market predictability. #2 The other changes are formal or wording: the Committee of the Regions reference is rephrased and a full stop is removed. #1#3
1 change of substance, plus 1 formaland1 wording-only. Each change below carries a one-line ✦ note from the same model. Written from the two texts only — read the highlighted passages before relying on it.
The changes to the text itself, in document order. Cover page, citations (“having regard to …”), standard resolution paragraphs and punctuation-only edits are left out — they are in “Show every difference”.
Change #2 Substance
Adds recitals on the Paris Agreement, the market stability reserve and invalidation of allowances above 650 million from 1 March 2027, and replaces the rule so allowances above 400 million cease to be valid until 28 February 2027.
Citation 5: After consulting the Committee of the Regions, / (deleted)
Recital 1: (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.
Recital 2: (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. / 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).
Recital 3: (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.
Decision (EU) 2015/1814
Article 1 – paragraph 1, Article 5 – paragraph 2: deleted / (deleted)
Decision (EU) 2015/1814
Article 1 – paragraph 1 a (new), Article 1 – paragraph 5a: 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 until 28 February 2027, allowances held in the reserve above 400 million allowances shall no longer be valid. / From 1 March 2027, allowances held in the reserve above 650 million allowances shall no longer be valid.’