Sittings · Document
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
Committee on the Environment, Climate and Food Safety · Rapporteur: Pierfrancesco Maran
Parliament's amended version of the Commission proposal to amend Decision (EU) 2015/1814 on the market stability reserve. It keeps the invalidation of allowances until 28 February 2027, then raises the threshold above which allowances in the reserve become invalid from 400 million to 650 million from 1 March 2027.¶¶ The amended recitals add the first global stocktake outcome of 13 December 2023 and the United Arab Emirates Consensus, and describe the reserve as addressing the historical oversupply in the EU emissions trading system and improving market resilience.¶¶ The report also changes the citation to say the Committee of the Regions was consulted, and calls on the Commission to refer the matter to Parliament again if it substantially amends its proposal.¶¶
Committee position. The committee proposes to adopt Parliament's first-reading position with amendments to the Commission proposal, keeping invalidation until 28 February 2027 and raising the threshold to 650 million allowances from 1 March 2027. The rapporteur states the draft report does not modify the Commission's proposal as a substantive position, pending the wider ETS review.¶¶¶
Key points
- Parliament adopts its position at first reading on the proposal to amend Decision (EU) 2015/1814 on ceasing the invalidation of allowances in the market stability reserve.¶¶
- The citation is changed so that the Committee of the Regions is consulted rather than having given an opinion.¶
- Recital 1 adds that the commitment to limit temperature increase was reinforced by the first global stocktake outcome adopted on 13 December 2023 in Dubai and the United Arab Emirates Consensus.¶
- Recital 2 states the market stability reserve was set up to address the historical oversupply in the EU emissions trading system and the risk of supply and demand imbalances.¶
- Recital 3 states allowances held in the reserve above 650 million should be considered invalid as of 1 March 2027, to increase long-term market predictability and align with the Union's 2040 and 2050 climate targets.¶
- The provision that Article 1(5a) would cease to apply from the date of entry into force of the act is deleted.¶
- Article 1(5a) is replaced: from 2023 until 28 February 2027, allowances held in the reserve above 400 million are no longer valid.¶
- From 1 March 2027, allowances held in the reserve above 650 million are no longer valid.¶
- Parliament calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal.¶
Who is affected
Figures and deadlines
- 400 million allowances: threshold above which allowances in the reserve are no longer valid until 28 February 2027.¶
- 650 million allowances: threshold above which allowances in the reserve are no longer valid from 1 March 2027.¶¶
- 1 March 2027: date from which the 650 million threshold applies.¶¶
- 28 February 2027: end date for the 400 million threshold.¶
- 13 December 2023: date the first global stocktake outcome was adopted in Dubai.¶
Legal basis: Article 294(2) and Article 192(1) of the Treaty on the Functioning of the European Union.¶
Written by a language model from the full text only; every figure comes from the text and ¶ links to the paragraph it rests on. Check the text itself before relying on it.