Sittings · Document

Draft report (COM(2025)0738 – 2025/0380(COD)) 2026-03-17

Amending Decision (EU) 2015/1814 as regards the market stability reserve for the buildings, road transport and additional sector

Committee on the Environment, Climate and Food Safety

Amendment 11

Li Andersson, Sebastian Everding

Proposal for a decision

–

	Proposal for rejection
	The European Parliament rejects the Commission’s proposal to amend Decision (EU) 2015/1814 as regards the market stability reserve for the buildings, road transport and additional sectors and calls on the Commission to withdraw its proposal.

Or. en

Justification

The proposal goes too far in trading off environmental integrity. The proposal constitutes a major risk for the EU reaching its climate targets. MSR2 already has price containment mechanisms in place. The European Commission is proposing to radically change and water down those mechanisms and without presenting an impact assessment. These proposals would have far reaching climate consequences:

- Quadrupling the pricetigger release would potentially allow for additional supply that is “[...] more than the required annual ETS2 reduction of 60 million tCO2 .” This change allows for emissions under ETS2 to increase annually during the first two years of operation. Note that the EU COM is proposing to ignore the institutional reflection, and checks and balances, stipulated in Art 30(h) of the ETS Directive related to assessing the ‘effectiveness of the measure’ when considering a second release within a year. That assessment is to be replaced with an additional automatic trigger.

- Cancelling the sunset clause for the 600 million allowances in the MSR2. These 600 million allowances are “ [...] equivalent to 10 years of ETS2 emissions abatement. ” This intervention would undo the raison d’être of the ETS2 for the first ten years, ensuring that emissions can remain stable as the decreasing cap can be completely offset with allowances from the MSR2. As this immense amount of 600 million allowances is on top of the ETS2 cap and the EU’s climate targets, other policies and efforts will be needed to compensate for this watering down of the ETS2 so that the EU’s 2030 and 2040 climate targets can be reached. No additional measures to compensate for these significant extra emissions have been proposed or signalled.

- The smoother release function should start at the current volumetric trigger (210 million) rather than adding an arbitrary 50 million to it.

Amendment 12

Niels Flemming Hansen, Jessica Polfjärd

Proposal for a decision

–

	Proposal for rejection
	The European Parliament rejects the Commission proposal to amend Decision (EU) 2015/1814 as regards the market stability reserve for the buildings, road transport and additional sectors.

Or. en

Amendment 13

Marie Toussaint

Proposal for a decision

Recital 1 a (new)

Text proposed by the Commission	Amendment
	(1 a) The 2021 Impact Assessment1a accompanying the proposal for a directive to introduce a new emissions trading system for the building, road transport and additional sectors (the 'ETS2') conducted a review on the price elasticity of buildings and road transport fuels demand across Member States. It confirmed that the demand for fuel for buildings and road transport is quite inelastic, especially in the short term, and varies significantly between Member States. It also confirmed that price elasticity of energy demand is lower in buildings than in the transport sector. This suggests that a short-term increase of fuel prices in these sectors will only have a limited impact on the decarbonisation of these sectors. On the other hand, a better use of revenues generated by carbon pricing instruments, in particular through an increased budget for the Social Climate Fund, established by Regulation (EU) 2023/955 of the European Parliament and of the Council1b, and stronger conditionalities on the use of the emission trading system (ETS1) revenues for social climate measures by Member States, could significantly support vulnerable households in their effort to switch off fossil fuels.
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	1a SWD(2021)601 final, Part 1/4.
	1b Regulation (EU) 2023/955 of the European Parliament and of the Council of 10 May 2023 establishing a Social Climate Fund and amending Regulation (EU) 2021/1060 (OJ L 130, 16.5.2023, p. 1, ELI: http://data.europa.eu/eli/reg/2023/955/oj).

Or. en

Amendment 14

Marta Temido, Annalisa Corrado, Kristian Vigenin, Tiemo Wölken, César Luena, Thomas Pellerin-Carlin

Proposal for a decision

Recital 1 a (new)

Text proposed by the Commission	Amendment
	(1 a) The 2021 Impact Assessment for ETS2 highlighted that fuel demand in buildings and road transport remains largely inelastic, especially in the short term, since consumers cannot easily or quickly reduce fuel use, and also because price signals vary significantly across Member States. To address this, the Commission established the Social Climate Fund (SCF). Strengthening the SCF budget and applying stricter conditionalities on the emission trading system (ETS1) revenues would more effectively help vulnerable households transition away from fossil fuels than relying solely on short-term price hikes.

Or. en

Amendment 15

Marie Toussaint

Proposal for a decision

Recital 1 b (new)

Text proposed by the Commission	Amendment
	(1 b) On 4 February 2026, the European Investment Bank (EIB) launched the ETS2 Frontloading Facility, which aims at frontloading investment in housing and transport sectors ahead of the anticipated start of ETS2 in 2028, providing enhanced access to low-carbon solutions for low- and middle-income households. This initiative, together with the newly introduced early auctioning and resources already available under the Social Climate Fund for 2026 and 2027, is a crucial step to provide easily deployable and affordable solutions to vulnerable households before any carbon pricing starts. Its financial resources should be significantly increased to take into account that investments in low-carbon solutions take time to translate into real climate and economic benefits for households. Its scope should also be strictly targeted in line with the eligibility criteria of Regulation (EU) 2023/955 to be able to reach enough vulnerable households and vulnerable transport users across all Member States well ahead of 2028. Revenues available under the Social Climate Fund should also be frontloaded, irrespective of the postponement of the entry into force of ETS2 using in particular existing ETS1 revenues.

Or. en

Amendment 16

Marta Temido, Annalisa Corrado, Kristian Vigenin, Tiemo Wölken, César Luena, Thomas Pellerin-Carlin, Heléne Fritzon

Proposal for a decision

Recital 1 b (new)

Text proposed by the Commission	Amendment
	(1 b) On February 4 2026, the European Investment Bank (EIB) launched the ETS2 Frontloading Facility, aiming to accelerate housing and transport investments before carbon pricing begins in 2028. By providing affordable, low-carbon solutions to vulnerable households early, the initiative aims to soften the economic impact of the transition. To maximize this impact, the Frontloading Facility’s budget should be significantly expanded, and its scope aligned with Social Climate Fund eligibility criteria to ensure a faster and more inclusive decarbonization process.

Or. en

Amendment 17

Marie Toussaint

Proposal for a decision

Recital 1 c (new)

Text proposed by the Commission	Amendment
	(1 c) As of February 2026, only four Member States officially submitted their draft Social Climate Plans, including one formally adopted by the Commission. Social Climate Plans are essential to provide vulnerable households and transport users with full transparency and certainty on the availability of support measures in the short- to medium-term, giving them planning certainty to invest in transitioning away from fossil fuels in heating and road transport. The Commission should therefore commit to provisionally assess draft Social Climate Plans even for Member States that have not yet fully transposed ETS2 in national law. Each Member State should also publish a detailed plan on the intended use of ETS1 revenues to support vulnerable households and transport users in their efforts to switch off fossil fuels in heating and road transport.

Or. en

Amendment 18

Marta Temido, Annalisa Corrado, Kristian Vigenin, Tiemo Wölken, César Luena, Thomas Pellerin-Carlin, Heléne Fritzon

Proposal for a decision

Recital 1 c (new)

Text proposed by the Commission	Amendment
	(1 c) The Commission, in collaboration with the EIB and Member States, should publish a comprehensive assessment of the vulnerable households and transport users supported by the ETS2 Frontloading Facility and the Social Climate Fund.

Or. en

Amendment 19

Jana Nagyová, Ondřej Knotek, Antonín Staněk, Viktória Ferenc, Jorge Buxadé Villalba, Mathilde Androuët, Marie-Luce Brasier-Clain

Proposal for a decision

Recital 2

Text proposed by the Commission	Amendment
(2) Decision (EU) 2015/1814 of the European Parliament and of the Council3 established a market stability reserve in order to mitigate the risk of supply and demand imbalances associated with the start of emissions trading for the buildings, road transport and additional sectors, as well as to make it more resistant to market shocks.	(2) Directive (EU) 2023/959 of the European Parliament and of the Council1a introduced a separate emissions trading system for fuels used in buildings, road transport and additional sectors (the 'ETS2'), such as heating of industrial facilities, that will have a disproportionate impact on Union citizens, especially vulnerable groups. Therefore, Decision (EU) 2015/1814 of the European Parliament and of the Council3 established a market stability reserve in order to mitigate the risk of supply and demand imbalances associated with the start of emissions trading for the buildings, road transport and additional sectors, as well as to make it more resistant to market shocks.
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	1a Directive (EU) 2023/959 of the European Parliament and of the Council of 10 May 2023 amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union and Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading system (OJ L 130, 16.5.2023, p. 134, ELI: http://data.europa.eu/eli/dir/2023/959/oj).
3 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).	3 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).

Or. en

Amendment 20

Adam Jarubas, Andrzej Halicki, Dariusz Joński, Elżbieta Katarzyna Łukacijewska, Mirosława Nykiel, Jagna Marczułajtis-Walczak, Marta Wcisło, Krzysztof Hetman, Andrzej Buła, Hanna Gronkiewicz-Waltz, Bartosz Arłukowicz, Bartłomiej Sienkiewicz, Kamila Gasiuk-Pihowicz, Borys Budka

Proposal for a decision

Recital 2 a (new)

Text proposed by the Commission	Amendment
	(2 a) The access to the system for greenhouse gas emission allowance trading within the Union (the 'EU ETS') market should be limited to entities that are installations and aviation and maritime operators with compliance obligations under EU ETS. Only financial intermediaries purchasing allowances for the account of the installations and not their own can be an exception.

Or. en

Amendment 21

Marie-Luce Brasier-Clain, Mathilde Androuët, Anne-Sophie Frigout, Ondřej Knotek, Jana Nagyová, Roman Haider

Proposal for a decision

Recital 2 a (new)

Text proposed by the Commission	Amendment
	(2a) The objective of the emissions trading system for fuels used in buildings, road transport and additional sectors (‘ETS2’) is to reduce emissions in the sectors concerned by 42 % by 2030 compared to 2005 levels;

Or. fr

Amendment 22

Marie-Luce Brasier-Clain, Mathilde Androuët, Anne-Sophie Frigout, Ondřej Knotek, Jana Nagyová, Antonín Staněk, Silvia Sardone, Roman Haider

Proposal for a decision

Recital 2 b (new)

Text proposed by the Commission	Amendment
	(2b) In order to avoid exceptional energy price volatility putting excessive pressure on European households and businesses in a context of heightened geopolitical tensions, it is appropriate to provide for the possibility to postpone the application of the emissions trading system for buildings, road transport and additional sectors for a further year, or even to discontinue it. This possibility should be based on the safeguard mechanism provided for in Article 30k(2) of Directive (EU) 2023/959, which amends Directive 2003/87/EC.

Or. fr

Amendment 23

Proposal for a decision

Recital 2 b (new)

Text proposed by the Commission	Amendment
	(2 b) The maritime and aviation sectors, as well as energy-intensive industries, are sectors where reducing emissions is difficult and simply lack ready-made ecological alternatives to meet their demand, tailored policies are needed to prevent carbon leakage and companies from leaving the Union market.

Or. en

Amendment 24

Proposal for a decision

Recital 2 c (new)

Text proposed by the Commission	Amendment
	(2 c) Critical industrial sectors essential to Europe’s security and resilience should be able to sell their product for defence purposes at no extra cost. The climate policy architecture needs to recognize that. To maintain production capacity to keep strategic reserves for steel, cement, and chemical production this production needs to be exempt from EU ETS.

Or. en

Amendment 25

Proposal for a decision

Recital 2 d (new)

Text proposed by the Commission	Amendment
	(2 d) Member States that can meet their reductions under Regulation (EU) 2023/857 of the European Parliament and of the Council1a (the 'Effort Sharing Regulation') without the entry into force of ETS2 should not be obliged to implement chapter IVa "Emissions trading system for buildings, road transport and additional sectors" (ETS2) of Directive 2003/87/EC.
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	1a Regulation (EU) 2023/857 of the European Parliament and of the Council of 19 April 2023 amending Regulation (EU) 2018/842 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement, and Regulation (OJ L 111, 26.4.2023, p. 1, ELI: http://data.europa.eu/eli/reg/2023/857/oj).

Or. en

Amendment 26

Proposal for a decision

Recital 2 e (new)

Text proposed by the Commission	Amendment
	(2 e) ETS2 should be voluntary until 2030 to support decarbonization in those countries that cannot achieve their targets through domestic measures. Consequently, it would be justified to establish a flexible model, allowing for a temporary derogation from the mandatory application of ETS2 until 2030, provided that the Member State demonstrates that it is pursuing its climate goals effectively and in compliance with Union law, using domestic measures with an equivalent reduction effect.

Or. en

Amendment 27

Proposal for a decision

Recital 2 f (new)

Text proposed by the Commission	Amendment
	(2 f) For the purpose of Article 30h(2) of Directive 2003/87EC, indexation based on the European index of consumer prices for 2028 should apply. Allowances released through the mechanism provided for in this paragraph to prevent excessive price increases should be released indefinitely.

Or. en

Amendment 28

Jana Nagyová

Proposal for a decision

Recital 3

Text proposed by the Commission	Amendment
(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. Those amendments should not hinder the Union’s socially acceptable decarbonisation efforts, while simultaneously and purposefully increasing energy and raw material self-sufficiency. According to the European Central Bank, green investment in the Union remains below the levels required to meet the 2030 decarbonisation target, with particularly noticeable shortfalls during the COVID-19 pandemic. Closing this gap will require annual investments of between 2.7 % and 3.7 % of the Union’s 2023 GDP until the end of the decade, especially in the transport sector. Therefore, Member States need to remain vigilant against the risk of a green funding gap, particularly following the expiry of the Recovery and Resilience Facility, established by Regulation (EU) 2021/241 of the European Parliament and of the Council1a.
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	1a Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility (OJ L 57, 18.2.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/241/oj).

Or. en

Amendment 29

Marie Toussaint

Proposal for a decision

Recital 3

Text proposed by the Commission	Amendment
(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. On the other hand, the proposed targeted amendments will lead to an increase of emissions from road transport and buildings that may endanger the achievement of the Union climate targets. Therefore, following the adoption of the targeted amendments, the Commission and Member States should adopt additional decarbonisation measures that fully compensate for that increase in emissions.

Or. en

Amendment 30

Li Andersson, Sebastian Everding

Proposal for a decision

Recital 3

Text proposed by the Commission	Amendment
(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. The Commission should ensure that any such changes will not hinder the Union’s decarbonisation efforts by enacting additional Union level complementary climate policies to balance any increase of emissions.

Or. en

Justification

To ensure MSR2 changes do not hinder the union’s decarbonisation efforts, increased ambition is needed via other EU-level climate policies to make up for increased emissions due to MSR2 changes.

Amendment 31

Alexandr Vondra, Jacek Ozdoba, Claudiu-Richard Târziu, Beatrice Timgren, Laurence Trochu, Jadwiga Wiśniewska, Anna Zalewska, Aurelijus Veryga, Pietro Fiocchi, Michele Picaro, Nicola Procaccini, Antonella Sberna, Stefano Cavedagna, Paolo Inselvini, Sergio Berlato

Proposal for a decision

Recital 3

Text proposed by the Commission	Amendment
(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 the system costs of a renewables-based power system characterised by intermittency are more comprehensive than anticipated, challenges of the EU ETS and to the green and zero-carbon transformation remains.

Or. en

Amendment 32

Anja Arndt

Proposal for a decision

Recital 3 a (new)

Text proposed by the Commission	Amendment
	(3 a) Given that the planned introduction of a separate emissions trading system for buildings and road transport would entail significant additional costs for households, micro-enterprises and consumers across the Union, particular caution is required. Although the Social Climate Fund has been set up to mitigate potential social impacts, it is limited in time, amounts to around EUR 87 billion for the period 2026 to 2032, and also requires national co-financing of at least 25 % by Member States. Furthermore, access to these funds depends on the timely submission of national social climate plans and compliance with other administrative requirements. There is therefore no certainty for Union citizens that their respective national governments will have timely access to these funds or that effective social compensation can be guaranteed.

Or. en

Justification

The introduction of a separate ETS for buildings and road transport would place a considerable financial burden on households and small businesses. At the same time, the Social Climate Fund, which is intended to mitigate this burden, is limited in time and requires additional national co-financing and administrative requirements. Given the existing energy poverty in the EU and the limited global impact of unilateral measures, the introduction of this system appears disproportionate. If ETS2 will not be introduced, there will be no need to adjust the market stability reserve.

Amendment 33

Li Andersson, Sebastian Everding

Proposal for a decision

Recital 3 a (new)

Text proposed by the Commission	Amendment
	(3 a) According to the European Central Bank, green investment in the Union remains below the levels required to meet the 2030 decarbonisation target, with particularly noticeable shortfalls during the COVID-19 pandemic. Closing this gap will require annual investments of between 2.7 % and 3.7 % of the Union’s 2023 GDP until the end of the decade, especially in the transport sector. Therefore, Member States need to remain vigilant against the risk of a green funding gap, particularly following the expiry of the Recovery and Resilience Facility, established by Regulation (EU) 2021/241 of the European Parliament and of the Council1a.
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	1a Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility (OJ L 57, 18.2.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/241/oj).

Or. en

Justification

To ensure MSR2 changes do not hinder the union’s decarbonisation efforts, increased ambition is needed via other EU-level climate policies to make up for increased emissions due to MSR2 changes. The Commission needs to assume responsibility for correcting any climate policies in light of the changes to the MSR, and not just leave it to wishful thinking.

Amendment 34

Proposal for a decision

Recital 3 a (new)

Text proposed by the Commission	Amendment
	(3 a) The EU ETS carbon price is today hovering around €85 per ton of CO2, close to a peak of €100 that was reached in February 2023. Some analysts expect the Union's carbon price might increase further towards a price range of €250 and €400 per ton by 2040. The current geopolitical situation in conjunction with significant differences in cap design, scope, allocation methods and other futures of carbon pricing worldwide have a huge negative impact on European industry and citizens including the risk of negative inflationary impact.

Or. en

Amendment 35

Marie Toussaint

Proposal for a decision

Recital 3 a (new)

Text proposed by the Commission	Amendment
	(3 a) Ambitious sectoral decarbonisation regulatory instruments, such as CO2 standards for cars, vans, trucks and buses, and minimum energy performance standards in buildings, remain the most effective tools for mitigating the impact of higher fuels prices in buildings and road transport by helping households to reduce their consumption of fossil fuels. They should therefore be preserved and not weakened.

Or. en

Amendment 36

Marta Temido, Annalisa Corrado, Kristian Vigenin, Tiemo Wölken, César Luena, Thomas Pellerin-Carlin, Heléne Fritzon

Proposal for a decision

Recital 3 a (new)

Text proposed by the Commission	Amendment
	(3 a) Since sectoral decarbonization instruments are the most effective way to reduce fossil fuel dependency and mitigate high energy costs, it is decisive to maintain and strengthen them. Weakening these policies would force the carbon market to carry the entire burden of emission reductions, ultimately driving up the price of ETS2 allowances.

Or. en

Amendment 37

Jana Nagyová

Proposal for a decision

Recital 3 a (new)

Text proposed by the Commission	Amendment
	(3 a) The newly introduced emissions trading system for buildings, road transport and additional sectors must not become subject to financial speculation, but must function as a stable and price-predictable levy for air pollution.

Or. en

Amendment 38

Li Andersson, Sebastian Everding

Proposal for a decision

Recital 3 b (new)

Text proposed by the Commission	Amendment
	(3 b) 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 mitigating the impact of the allowance prices on consumers and to help households to reduce their consumption of fossil fuels for heating and in transport. When reviewing and approving national Social Climate Plans and national energy and climate plans, the Commission should ensure that complementary policies at Union and Member State level are introduced and implemented to support an environmentally effective and socially fair emissions trading system for the buildings, road transport and additional sectors (the 'ETS2') and the achievement of Union climate targets. Complementary policies with a pre-2030 impact and a strong investment signal are particularly important such as a mandatory greening of corporate fleets, increased deep renovations and heat pump roll out and the equitable phase out of internal combustion engine (ICE) vehicles and fossil fuel boilers. The ETS2 Frontloading Facility, jointly developed by the Commission and the European Investment Bank, should be strengthened to accelerate early green transition investments and thereby mitigate price pressures.

Or. en

Justification

Complementary policy, a strong Social Climate Fund and the effective use of auctioning revenues are key to ensure a fair and effective implementation of ETS2. Suggested amendment aims to concretise and strengthen existing wording on complementary policy, the Social Climate Fund and revenue use, including a IA on the Social Climate Fund.

Amendment 39

Anja Arndt

Proposal for a decision

Recital 3 b (new)

Text proposed by the Commission	Amendment
	(3 b) At the same time, recent Eurostat data show that energy poverty is already a significant problem in the Union. In the last fully assessed year, around 9.2% of the Union's population – more than 41 million people – were unable to keep their homes adequately warm. Based on approximately 200 million households in the Union, this corresponds to an estimated 18 to 20 million households that were unable to heat their homes adequately. Against this background, there is a risk that additional costs associated with the emissions trading system for buildings and road transport will further exacerbate energy poverty and increase social tensions.

Or. en

Justification

The introduction of a separate ETS for buildings and road transport would place a considerable financial burden on households and small businesses. At the same time, the Climate Social Fund, which is intended to mitigate this burden, is limited in time and requires additional national co-financing and administrative requirements. Given the existing energy poverty in the EU and the limited global impact of unilateral measures, the introduction of this system appears disproportionate. If ETS2 will not be introduced, there will be no need to adjust the market stability reserve.

Amendment 40

Marie Toussaint

Proposal for a decision

Recital 3 b (new)

Text proposed by the Commission	Amendment
	(3 b) By 1 October 2026, the Commission should complement its analysis of the final updated National Energy and Climate Plans by identifying, for each Member State, sectoral decarbonisation measures that could help reduce the demand for ETS2 allowances in the future, and therefore also reduce the ETS2 price.

Or. en

Amendment 41

Li Andersson, Sebastian Everding

Proposal for a decision

Recital 3 c (new)

Text proposed by the Commission	Amendment
	(3 c) It is important for sufficient financial resources for those measures coming from sources such as the Social Climate Fund, established by Regulation (EU) 2023/955 of the European Parliament and of the Council 1a, the revenues from emissions trading and other relevant sources to be made available in a timely manner. Public participation, transparency, additionality and accountability are critical in the spending of all ETS2 revenues to ensure effective revenue use and social buy-in. After the Social Climate Plans are submitted, the Commission should conduct an impact assessment of the Social Climate Fund to assess the number of vulnerable households, transport users, and micro-enterprises, whose needs remain unaddressed. To strengthen support to vulnerable households, the Commission should uncap and extend the Social Climate Fund as well as increase the co-financing share of Member States. The Commission should further provide guidance to Member States regarding additional funding sources and measures to support vulnerable households. Furthermore, the concept of 'climate income' should be explored by the Commission and the Member States as a means of redistributing revenues from the largest greenhouse gas emitters to citizens.
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	1a Regulation (EU) 2023/955 of the European Parliament and of the Council of 10 May 2023 establishing a Social Climate Fund and amending Regulation (EU) 2021/1060 (OJ L 130, 16.5.2023, p.1, ELI: http://data.europa.eu/eli/reg/2023/955/oj).

Or. en

Justification

Amendment 42

Anja Arndt

Proposal for a decision

Recital 3 c (new)

Text proposed by the Commission	Amendment
	(3 c) Furthermore, the planned expansion of the emissions trading system would further increase the importance of the market stability reserve. This already has a significant impact on pricing in the certificate market, as it removes certificates from the market or releases them again on the basis of administrative thresholds. As a result, pricing is not determined solely by supply and demand, but is significantly influenced by regulatory intervention, which increases the risk of misallocation and distorted investment signals.

Or. en

Justification

Amendment 43

Marie Toussaint

Proposal for a decision

Recital 3 c (new)

Text proposed by the Commission	Amendment
	(3 c) It is important to ensure that financial resources, especially those coming from the Social Climate Fund, are made available in a timely manner and at a level proportionate to the increase in fuel prices. The budget of the Social Climate Fund should not be capped and reflect the real increase in fuel retail prices, and its existence extended until at least 2040. The budget and eligibility criteria of the Social Climate Plans should not be altered by their possible future integration into National and Regional Partnership Plans.

Or. en

Amendment 44

Anja Arndt

Proposal for a decision

Recital 3 d (new)

Text proposed by the Commission	Amendment
	(3 d) It should also be borne in mind that measures taken by the Union alone will only have a limited impact on global emissions. Even if the Union completely reduces its own emissions, there is no certainty as to the extent to which this will affect global temperature trends, as these depend largely on global emission trends.

Or. en

Justification

Amendment 45

Anja Arndt

Proposal for a decision

Recital 3 e (new)

Text proposed by the Commission	Amendment
	(3 e) In view of the existing social burdens, the limited financial scope of the Social Climate Fund, the additional national co-financing obligations, the risks of regulatory market distortions caused by the market stability reserve, and the limited global impact of unilateral measures, the planned emissions trading system for buildings and road transport should be abolished. As a result, it would not be necessary to adjust the market stability reserve in relation to these sectors.

Or. en

Justification

Amendment 46

Pär Holmgren, Maria Ohisalo, Michael Bloss

Proposal for a decision

Recital 4

Text proposed by the Commission	Amendment
(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.	deleted

Or. en

Justification

It is important to keep the sunset clause of the current legislation in order to protect the effectiveness of the ETS2 as a climate mitigation measure.. The Commission has shared no impact assessment on the climate impact of allowing up to an additional 600 million allowances in the MSR2 from 2031.

Amendment 47

Marie Toussaint

Proposal for a decision

Recital 4

Text proposed by the Commission	Amendment
(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) Any release of allowances from the reserve should be made available to reinforce the budget of the Social Climate Fund. By 1 January 2031, the Commission should publish a report presenting the number of allowances that have not been released from the reserve at that time, and assessing the environmental and social impacts of maintaining them in the reserve. That report should, where appropriate, be accompanied by a proposal to amend this Decision.

Or. en

Amendment 48

Proposal for a decision

Recital 4

Text proposed by the Commission	Amendment
(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 and energy price stability and predictability, the entry into force of the ETS2 should be postponed by 2030, and 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.

Or. en

Amendment 49

Marta Temido, Annalisa Corrado, Kristian Vigenin, Tiemo Wölken, César Luena, Thomas Pellerin-Carlin, Heléne Fritzon

Proposal for a decision

Recital 4

Text proposed by the Commission	Amendment
(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 beyond 31 December 2030, but not in their totality after 31 of December 2033.

Or. en

Amendment 50

Stine Bosse

Proposal for a decision

Recital 4

Text proposed by the Commission	Amendment
(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 from the reserve should no longer be valid beyond 1 January 2033.

Or. en

Amendment 51

Anja Arndt

Proposal for a decision

Recital 4 a (new)

Text proposed by the Commission	Amendment
	(4 a) Several Member States have already introduced national instruments for pricing CO₂ emissions or other regulatory measures that address emissions from buildings and road transport. These include national systems in Germany and Austria (national emissions trading systems for fuels) and CO₂ taxes in Sweden, Finland, Denmark, France, Ireland and the Netherlands, which also cover emissions from transport and buildings. The introduction of ETS2 must not undermine or replace existing national measures. Climate policy measures in the areas of buildings and road transport directly affect citizens' living costs and the economic competitiveness of Member States. Member States must therefore retain full control over the design of appropriate instruments. In accordance with the principle of subsidiarity enshrined in Article 5 of the Treaty on European Union, Member States should retain full discretion to define, adapt or maintain their own measures to reduce emissions in these sectors.

Or. en

Justification

Several MS have already introduced national CO₂ pricing systems or regulatory measures to reduce emissions in building and transport sectors, including national emissions trading systems in DE and AT and CO₂ taxes in Sweden, Finland, Denmark, FR, IR and Netherlands.

A centralised EU system must not weaken or replace these existing national measures. Climate policy in these areas has a direct impact on energy prices, mobility costs and cost of living for citizens. MS should retain flexibility to take measures that are appropriate to their respective economic and social conditions.

Amendment 52

Proposal for a decision

Recital 4 a (new)

Text proposed by the Commission	Amendment
	(4 a) Notes that after 2030 free allocations should be maintained for district heating and sectors at the risk of carbon leakage, conditional on credible and verifiable decarbonization investment plans. This approach preserves competitiveness while directly incentivizing transformation. To ensure just transition Modernisation Fund should be continued at the same level especially given additional investment needs after 2030.

Or. en

Amendment 53

Proposal for a decision

Recital 5

Text proposed by the Commission	Amendment
(5) In the event that the total number of allowances in circulation reaches a level below 260 million allowances, a more gradual and responsive release of allowances would contribute to further improving market stability and predictability for market participants. Therefore, the injection mechanism should take into account the difference between the total number of allowances in circulation and the lower threshold.	(5) In the event that the total number of allowances in circulation reaches a level below 260 million allowances, a more gradual and responsive release of allowances must contribute to further improving energy prices and market stability and predictability. Therefore, the injection mechanism should take into account the difference between the total number of allowances in circulation and the lower threshold, in both, the primary and the secondary market.

Or. en

Amendment 54

Stine Bosse

Proposal for a decision

Recital 5

Text proposed by the Commission	Amendment
(5) In the event that the total number of allowances in circulation reaches a level below 260 million allowances, a more gradual and responsive release of allowances would contribute to further improving market stability and predictability for market participants. Therefore, the injection mechanism should take into account the difference between the total number of allowances in circulation and the lower threshold.	(5) In the event that the total number of allowances in circulation reaches a level below 230 million allowances, a more gradual and responsive release of allowances would contribute to further improving market stability and predictability for market participants. Therefore, the injection mechanism should take into account the difference between the total number of allowances in circulation and the lower threshold.

Or. en

Amendment 55

Proposal for a decision

Recital 6

Text proposed by the Commission	Amendment
(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 stability and predictability, the mechanism of the emissions trading system for buildings, road transport and additional sectors should be designed in a careful manner. This could involve releasing a higher volume of allowances in the market, applied twice during the same 12 months period, the additional release should occur twice. At the same time, it is important to introduce a well-designed emergency procedure for the release of allowances in light of possible carbon price spikes including the possibility of temporarily or complete suspension of the EU ETS trading. Since the competitiveness of the European industry is hampered by excessive, unbearable prices, and since the European households connected to the large district heating systems are already subjects to the costs of compliance with the EU ETS, the same mechanism including an emergency suspension should also be applied to ETS1.

Or. en

Amendment 56

Pascal Canfin

Proposal for a decision

Recital 6

Text proposed by the Commission	Amendment
(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 an adequate 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. The Commission should consider further necessary measures to enhance price stability in the long term in the context of the review of Directive 2003/87/EC of the European Parliament and of the Council in 2026. Such measures could include the introduction of a market-based mechanism acting as a price corridor to ensure predictability, the strengthening of the frequency of releases of allowances under the price control mechanism referred to in Article 30h(2) of Directive 2003/87/EC, and its extension beyond 31 December 2029. When assessing those measures, the Commission should ensure that they are compatible with reaching the Union’s climate objectives as set out in Regulation (EU) 2021/1119 of the European Parliament and of the Council1a.
	_________________
	1a Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1, ELI: http://data.europa.eu/eli/reg/2021/1119/oj).

Or. en

Amendment 57

Marta Temido, Annalisa Corrado, Kristian Vigenin, Tiemo Wölken, César Luena, Thomas Pellerin-Carlin

Proposal for a decision

Recital 6

Text proposed by the Commission	Amendment
(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. If the measure is applied twice during the same 12 months period, the additional release should occur twice. As excessive price fluctuations might not be limited to an occurrence twice a year, stronger price curtailment instruments should start to be analysed by the Commission to guarantee price stability in the long term, as it appears to be a prerequisite to an effective just transition.

Or. en

Amendment 58

Jana Nagyová, Ondřej Knotek, Antonín Staněk, Viktória Ferenc, Jorge Buxadé Villalba

Proposal for a decision

Recital 6

Text proposed by the Commission	Amendment
(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 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, taking into account that interventions may occur even four times a year.

Or. en

Amendment 59

Anna Zalewska

on behalf of the ECR Group

Alexandr Vondra, Aurelijus Veryga, Laurence Trochu, Nicola Procaccini, Pietro Fiocchi, Michele Picaro, Stefano Cavedagna, Paolo Inselvini, Antonella Sberna, Sergio Berlato, Jacek Ozdoba, Jadwiga Wiśniewska

Proposal for a decision

Recital 6 a (new)

Text proposed by the Commission	Amendment
	(6 a) As part of the upcoming review of Directive (EU) 2003/87/EC, the Commission should thoroughly assess the introduction of Chapter IVa thereof establishing an emissions trading system for buildings, road transport and additional sectors. Particular attention should be paid to the social and financial consequences of the extension of the EU ETS for households, especially low-income and vulnerable households, as well as for transport users. The evaluation should examine, inter alia, the possibility of deleting or significantly postponing the application of Chapter IVa as well as the effectiveness of the extension of the EU ETS to new sectors and assessment of the proportionality of the measure given its negative impact on households and transport users. Moreover, the evaluation should assess the general impact of the European climate policies, in particular of the Directive 2003/87/EC (EU ETS Directive) and Directive (EU) 2024/1275 of the European Parliament and of the Council1a (Emissions performance of buildings Directive) on European households.
	_________________
	1a Directive (EU) 2024/1275 of the European Parliament and of the Council of 24 April 2024 on the energy performance of buildings (recast)(OJ L, 2024/1275, 8.5.2024, ELI: http://data.europa.eu/eli/dir/2024/1275/oj).

Or. en

Amendment 60

Marie Toussaint

Proposal for a decision

Recital 6 a (new)

Text proposed by the Commission	Amendment
	(6 a) By 1 March 2027, the Commission should publish an updated distributional impact assessment of the emissions trading system for the buildings, road transport and additional sectors based on updated price projections, in particular informed by the early auctioning of allowances. That report should also include an assessment of the number of vulnerable households and transport users that have benefitted from revenues available under the Social Climate Fund and from the EIB ETS2 Frontloading Facility during that period, including a breakdown by geographical areas (urban, peri-urban or rural), by income decile and by gender. That report may be accompanied by legislative proposals to increase the number of beneficiaries in the short term.

Or. en

Amendment 61

Li Andersson, Sebastian Everding

Proposal for a decision

Recital 6 a (new)

Text proposed by the Commission	Amendment
	(6 a) Following the revision of the market stability reserve provided for in this amending Decision, the Commission should conduct an impact assessment of the emissions trading system for the buildings, road transport and additional sectors in which it will assess the climate and social impact of the reform of the market stability reserve for the buildings, road transport and additional sectors. The impact assessment should contain projections of technology roll-out of key electrification technologies, such as electric vehicles and heat pumps, detailed by year and Member State. This will help create some guidance on whether decarbonisation efforts in ETS2 sectors are on track or not.

Or. en

Justification

An impact assessment specifically on the climate and social impact of the MSR2 reform is needed due to the lack of such assessment before the Commission’s proposal. Better data on key technologies will help create some guidance on whether decarbonisation efforts in ETS2-sectors are on track or not.

Amendment 62

Silvia Sardone, Susanna Ceccardi, Jorge Buxadé Villalba, Viktória Ferenc, Marie-Luce Brasier-Clain, Jana Nagyová, Roman Haider, Mathilde Androuët, Ondřej Knotek

Proposal for a decision

Recital 6 a (new)

Text proposed by the Commission	Amendment
	(6 a) Chapter IVa of Directive 2003/87/EC introduced a separate emissions trading system (ETS2) for fuels used in buildings, road transport and additional sectors. This system risks increasing the cost of living across the Union, especially for vulnerable groups. At a time when many Union citizens are already facing persistent inflation, high energy prices and economic uncertainty, the introduction of ETS2 risks further exacerbating social inequalities. Therefore, Chapter IVa of Directive 2003/87/EC should be deleted. Consequently, Article 1a of Decision (EU) 2015/1814 should also be deleted, as it would be no longer necessary in the absence of ETS2.

Or. en

Amendment 63

Marta Temido, Annalisa Corrado, Kristian Vigenin, Tiemo Wölken, César Luena, Thomas Pellerin-Carlin, Heléne Fritzon

Proposal for a decision

Recital 6 a (new)

Text proposed by the Commission	Amendment
	(6 a) The Commission should submit and make public a report to the European Parliament and to the Council on the functioning of the reserve for the buildings, road transport and additional sectors, analysing both climate and social impacts. In particular, that report should assess the draft Social Climate Plans, even for Member States that have not yet fully transposed ETS2 into national laws; each Member State should publish a detailed plan outlining how ETS1 revenues will be used specifically to help vulnerable households and transport users transition away from fossil fuels in heating and road transport.

Or. en

Amendment 64

Martin Hojsík

Proposal for a decision

Recital 6 a (new)

Text proposed by the Commission	Amendment
	(6 a) As benefits that come with the introduction of a carbon price are unevenly distributed across different groups in society, with lower-income households at highest risk of being adversely impacted by carbon taxing due to tight constraints on their expenditure, including for a purchase of a low-carbon technologies, the Commission should allow Member States to use revenues from emissions trading for a direct support to compensate higher costs incurred on households, without having to prove a positive environmental impact.

Or. en

Amendment 65

Katri Kulmuni

Proposal for a decision

Recital 6 a (new)

Text proposed by the Commission	Amendment
	(6 a) This amending Decision has been accompanied by the intention to amend the Commission Delegated Regulation (EU) 2023/28301a and a Frontloading Facility by the EIB, in addition to the postponement of the ETS2, as agreed in the amended Regulation (EU) 2021/1119. To ensure predictability and a functioning market-signal for businesses and regulated entities in the ETS2 sectors, any further changes to the Commission proposal should not be considered.
	_________________
	1a Commission Delegated Regulation (EU) 2023/2830 of 17 October 2023 supplementing Directive 2003/87/EC of the European Parliament and of the Council by laying down rules on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances (OJ L, 2023/2830, 20.12.2023, ELI: http://data.europa.eu/eli/reg_del/2023/2830/oj).

Or. en

Justification

The Commission's proposal for a revised Market Stability Reserve related to the road transport and buildings sector provides sufficient flexibility to prevent price shocks and potential volatility on the market, and as such, the Commission's proposal should be kept as is, without any additional changes.

Amendment 66

Jana Nagyová, Ondřej Knotek, Antonín Staněk, Viktória Ferenc, Jorge Buxadé Villalba, Mathilde Androuët, Marie-Luce Brasier-Clain, Silvia Sardone

Proposal for a decision

Recital 6 a (new)

Text proposed by the Commission	Amendment
	(6 a) In order to mitigate the disproportionate impact of ETS2 and ensure an effective intervention, the price cap in relation to the measures in the event of an excessive price increase should be reduced to EUR 25 and the system should be extended over 2030.

Or. en

Amendment 67

Marie Toussaint

Proposal for a decision

Recital 6 b (new)

Text proposed by the Commission	Amendment
	(6 b) By 1 March 2027, the Commission should publish a detailed impact assessment of other complementary measures that could help lowering the ETS2 price levels and alleviate the risk of negative social impacts without endangering the capacity of the Union and its Member States to meet the Union’s climate targets set out in Regulation (EU) 2021/1119. Such measures could include limiting the possibility for regulated entities to pass through the ETS2 cost on the retail price paid by final consumers, different options for strengthened price control mechanisms, including price corridors, a temporary derogation for regulated entities providing fuels used in residential buildings provided Member States demonstrate they can still meet their targets under Regulation (EU) 2018/842, have transposed Directive (EU) 2024/1275 of the European Parliament and of the Council1a in national law, and have submitted their first national building renovation plan taking due account of any recommendation issued by the Commission on their draft plan, in accordance with Article 3(6) and (7) of that Directive.
	_________________
	1a Directive (EU) 2024/1275 of the European Parliament and of the Council of 24 April 2024 on the energy performance of buildings (recast)(OJ L, 2024/1275, 8.5.2024, ELI: http://data.europa.eu/eli/dir/2024/1275/oj).

Or. en

Amendment 68

Martin Hojsík

Proposal for a decision

Recital 6 b (new)

Text proposed by the Commission	Amendment
	(6 b) The revenues from the ETS system are intended to fund decarbonisation projects and energy transition in a socially just way, not to increase Union´s dependency on fossil gas and increasing Union´s dependency on imports from third countries. The Commission should improve its oversee over the use of ETS revenues by the Member States, to make sure that Member States support citizens and decarbonisation of industry, and to prevent that they cumulate revenues from the auctioning or compensate for lack of finances in other unrelated areas. Every unspent money from the ETS system is money that could have supported citizens and businesess in just transition. Therefore, the Commission should improve reporting rules to disallow Member States to justify lack of reporting as a result of their national budgetary principles.

Or. en

Amendment 69

Anna Zalewska

on behalf of the ECR Group

Alexandr Vondra, Aurelijus Veryga, Laurence Trochu, Nicola Procaccini, Michele Picaro, Pietro Fiocchi, Stefano Cavedagna, Paolo Inselvini, Antonella Sberna, Sergio Berlato, Jacek Ozdoba, Jadwiga Wiśniewska

Proposal for a decision

Recital 6 b (new)

Text proposed by the Commission	Amendment
	(6 b) In order to ensure social acceptance of the extension of the EU ETS to buildings, road transport and additional services, prevent energy poverty and transport exclusion and avoid further increase of energy and fuels, any future implementation of the ETS2 should reflect different national specificities and starting points, such as energy mix of particular Member States, share of fossil fuels in the energy mix, the share of e-mobility and a share of old and second-hand vehicles in a given Member States. To that end, Member States should be allowed to temporarily suspend the application of the ETS2 in order to shield the low-income and vulnerable households from high energy and fuel prices.

Or. en

Amendment 70

Marta Temido, Annalisa Corrado, Kristian Vigenin, Tiemo Wölken, César Luena, Thomas Pellerin-Carlin, Heléne Fritzon

Proposal for a decision

Recital 6 b (new)

Text proposed by the Commission	Amendment
	(6 b) To ensure both environmental integrity and social fairness within the ETS2, the Commission should include a detailed impact assessment in its annual report pursuant to Article 10(5) of Directive 2003/87/EC, starting in the first quadrimester of 2027. This assessment must evaluate complementary measures to lower carbon prices and mitigate social risks without compromising the climate targets set by Regulation (EU) 2021/1119. Furthermore, the Commission should analyse whether invalidating a portion of the market stability reserve allowances is necessary to maintain the emissions reduction trajectory without compromising social fairness.

Or. en

Amendment 71

Jana Nagyová, Ondřej Knotek, Antonín Staněk, Viktória Ferenc, Jorge Buxadé Villalba, Mathilde Androuët, Marie-Luce Brasier-Clain, Silvia Sardone

Proposal for a decision

Recital 6 b (new)

Text proposed by the Commission	Amendment
	(6 b) The competent authorities of the Member States should be allowed to exempt the entity located in its territory from the obligation to surrender allowances.

Or. en

Amendment 72

Anna Zalewska

on behalf of the ECR Group

Laurence Trochu, Nicola Procaccini, Michele Picaro, Pietro Fiocchi, Stefano Cavedagna, Paolo Inselvini, Antonella Sberna, Sergio Berlato, Jacek Ozdoba, Jadwiga Wiśniewska, Alexandr Vondra, Aurelijus Veryga

Proposal for a decision

Recital 6 c (new)

Text proposed by the Commission	Amendment
	(6 c) European households and industries are already subject to significant regulatory and financial obligations arising from the Union’s climate legislation. Measures adopted under Directive 2003/87/EC establishing the EU Emissions Trading System result in increased energy and production costs, while requirements stemming from Directive (EU) 2024/1275 on the energy performance of buildings result in substantial renovation costs for households. Moreover, European households, which are connected to the large district heating installations are already subject to the costs of compliance with the EU ETS. In this context, additional regulatory obligations, such as the introduction of the extension of the EU ETS to buildings and road transport could further increase the cost of energy, heating and transport, in particular for low-income and vulnerable households.

Or. en

Amendment 73

Jana Nagyová

Proposal for a decision

Recital 6 c (new)

Text proposed by the Commission	Amendment
	(6 c) Following the revision of the market stability reserve provided for in this amending Decision, it is essential for the Commission to conduct an impact assessment of the emissions trading system for the buildings, road transport and additional sectors in which it will assess the social and environmental impacts of the emissions trading system, taking into account the specific characteristics of individual Member States, their energy mix and the state of the economy.

Or. en

Amendment 74

Marta Temido, Annalisa Corrado, Kristian Vigenin, Tiemo Wölken, César Luena, Thomas Pellerin-Carlin, Heléne Fritzon

Proposal for a decision

Recital 6 c (new)

Text proposed by the Commission	Amendment
	(6 c) A public report on the market stability reserve’s performance in buildings and transport must be submitted to the European Parliament and the Council, specifically analyzing the balance between climate goals and social impacts.

Or. en

Amendment 75

Jana Nagyová

Proposal for a decision

Recital 6 d (new)

Text proposed by the Commission	Amendment
	(6 d) 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, particularly in relation to heating costs and basic public transport provisions. In order to ensure social fairness and public acceptance of the emissions trading system for buildings and road transport, in the context of the review of Directive 2003/87/EC of the European Parliament and of the Council, it is essential that the Commission assesses whether further social safeguarding measures are necessary. Such measures could include allowing Member States to temporarily not apply the system to residential buildings by way of derogation, provided they have other measures in place to achieve the effort-sharing targets, strengthening and prolonging the EUR 25 price cap set in 2020 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, ensuring the possibility for full compensation of the costs passed through to vulnerable households or introducing other measures to limit the impact on vulnerable households. Those options need to be duly assessed with regard to their social and environmental impacts while ensuring they would not be to the detriment of meeting the Union's decarbonisation targets.

Or. en

Amendment 76

Jana Nagyová

Proposal for a decision

Recital 6 e (new)

Text proposed by the Commission	Amendment
	(6 e) The Union might be confronted with sudden and severe disturbances affecting the availability, affordability or security of energy supply due to large-scale blackouts, significant disruptions of electricity or gas systems, natural disasters, deliberate acts of sabotage against European energy infrastructure, geopolitical conflicts, or other exceptional events beyond the control of Member States. In extraordinary circumstances, sharp and temporary increases in allowance prices may aggravate existing economic and social pressures and risk undermining the orderly functioning of the Union's emissions trading system. The changes introduced by this amending Decision are not primarily aimed at enhancing the ability of the market stability reserve to mitigate such exceptional circumstances in the long-term. It is therefore appropriate, for strictly exceptional situations, that a stronger emergency mechanism applicable without further delay be proposed by the Commission which would introduce an additional stronger price ceiling for a limited period of time. This needs to be done in a manner that does not negatively affect fulfilment of the Union’s long-term climate objectives as well as the reduction of emissions within the scope of the emissions trading system for the buildings, road transport and additional sectors.

Or. en

Amendment 77

Li Andersson, Sebastian Everding

Proposal for a decision

Recital 7 a (new)

Text proposed by the Commission	Amendment
	(7 a) Any amendment related to the validity of allowances which have not been released from the market stability reserve for the buildings, road transport and additional sectors from 1 January 2031 needs to be carry out though a revision of ETS2, based on a robust impact assessment of the climate impacts of such possible amendment. Additionally, the climate impact of additional measures in ETS2 sectors to compensate for any releases from the market stability reserve for the buildings, road transport and additional sectors needs to be assessed to ensure the Union is on track with its 2030, 2040 and 2050 climate targets.

Or. en

Justification

Cancelling the sunset clause for the 600 million allowances in the MSR2 is highly problematic, especially as the EU COM has not shared any assessment of the climate or social impact of the MSR2 proposal. These 600 million allowances are “[...] equivalent to 10 years of ETS2 emissions abatement.” This intervention would undo the raison d’être of the ETS2 for the first ten years, ensuring that emissions can remain stable as the decreasing cap can be completely offset with allowances from the MSR2.

As this immense amount of 600 million allowances is on top of the ETS2 cap and the EU’s climate targets, other policies and efforts will be needed to compensate for this watering down of the ETS2 so that the EU’s 2030 and 2040 climate targets can be reached. No additional measures to compensate for these significant extra emissions have been proposed or signalled.

Therefore the sunset clause and any changes made to it should be revisited during the next ETS2 revision, based on a thorough assessment of, i.a., the climate impact of MSR2 releases and tinkering with the sunset clause. A key element of that assessment must be which other policies will compensate for the additional emissions allowed across ETS2 sectors to ensure the EU remains on track to reach its 2030, 2040 and 2050 climate targets.

Amendment 78

Niels Flemming Hansen, Jessica Polfjärd

Proposal for a decision

Article 1

Decision (EU) 2015/1814

Article 1a

Text proposed by the Commission	Amendment
Article 1	deleted
Article 1a of Decision (EU) 2015/1814 is amended as follows:
(1) In paragraph 3, the second sentence is deleted;
(2) In paragraph 4, the second sentence is replaced by the following: ‘The total number of allowances in circulation under this Article in a given year shall be the cumulative number of allowances covered by that Chapter that were issued, minus the cumulative tonnes of verified emissions covered by that Chapter for the period between 1 January [2027] and 31 December of that same given year and any allowances covered by that Chapter that were cancelled in accordance with Article 12(4) of Directive 2003/87/EC.’;
(3) In paragraph 5, the following subparagraph is added: ‘In any given year, if the total number of allowances in circulation is between 210 million and 260 million, additional allowances shall be released from the reserve. The additional amount shall be calculated by taking 100 million and subtracting twice the difference between the total number of allowances in circulation and 210 million. This additional amount shall be added to the quantity of allowances to be auctioned by the Member States under Article 10(2) of Directive 2003/87/EC beginning on 1 September of that year.’;
(4) In paragraph 7, the following sentence is inserted between the first and second sentence: ‘In the event that allowances are released from the reserve in accordance with Article 30h(2) of Directive 2003/87/EC, 20 million more allowances shall be added to the amount to be released from the reserve.’.

Or. en

Amendment 79

Li Andersson, Sebastian Everding

Proposal for a decision

Article 1 – paragraph 1 – point 1

Decision (EU) 2015/1814

Article 1a – paragraph 3

Text proposed by the Commission	Amendment
(1) In paragraph 3, the second sentence is deleted;	deleted

Or. en

Justification

Therefore the sunset clause shouldn’t be cancelled.

Amendment 80

Pär Holmgren, Maria Ohisalo, Michael Bloss

Proposal for a decision

Article 1 – paragraph 1 – point 1

Decision (EU) 2015/1814

Article 1a – paragraph 3

Text proposed by the Commission	Amendment
(1) In paragraph 3, the second sentence is deleted;	deleted

Or. en

Justification

It is important to keep the sunset clause of the current legislation in order to protect the effectiveness of the ETS2 as a climate mitigation measure. The Commission has shared no impact assessment on the climate impact of allowing up to an additional 600 million allowances in the MSR2 from 2031.

Amendment 81

Marie Toussaint

Proposal for a decision

Article 1 – paragraph 1 – point 1

Text proposed by the Commission	Amendment
(1) In paragraph 3, the second sentence is deleted;	(1) In paragraph 3, the second sentence is replaced by the following:
	'All allowances released in accordance with paragraphs 5, 6 or 7 of this Article shall be made available for the Social Climate Fund established by Regulation (EU) 2023/955 of the European Parliament and of the Council. The revenues from that auctioning shall constitute external assigned revenue in accordance with Article 21(5) of Regulation (EU, Euratom) 2018/1046. They shall come on top of the budget established under Article 10(1) of Regulation (EU) 2023/955 and shall be used in accordance with the rules applicable to the Social Climate Fund.
	At the latest by ... [3 months from the entry into force of this amending Decision], the Commission and Member States shall adopt additional decarbonisation measures that fully compensate for that increase in emissions.
	By 1 January 2031, the Commission shall publish a report presenting the number of allowances that have not been released from the reserve at that time, and assessing the environmental and social impacts of maintaining them in the reserve. That report shall, where appropriate, be accompanied by a proposal to amend this Decision.'

Or. en

Amendment 82

Marta Temido, Annalisa Corrado, Kristian Vigenin, Tiemo Wölken, César Luena, Thomas Pellerin-Carlin, Heléne Fritzon

Proposal for a decision

Article 1 – paragraph 1 – point 1

Decision (EU) 2015/1814

Article 1a – paragraph 3

Text proposed by the Commission	Amendment
(1) In paragraph 3, the second sentence is deleted;	(1) In paragraph 3, the second sentence is amended as follows:
	'All allowances released in accordance with paragraphs 5, 6 or 7 of this Article shall be made available for the Social Climate Fund, established by Regulation (EU) 2023/955 of the European Parliament and of the Council in addition to its financial envelope. The revenues from that auctioning shall constitute external assigned revenue in accordance with Article 21(5) of Regulation (EU, Euratom) 2018/1046. They shall come on top of the budget established under Article 10(1) of Regulation (EU) 2023/955 and shall be used in accordance with the rules applicable to the Social Climate Fund. From 1 January 2031 until 31 December 2033, the allowances referred to in that paragraph that have not been released shall remain valid. From 1 January 2034, 200 million of the allowances referred to in that subparagraph that have not been released shall no longer be valid.'

Or. en

Amendment 83

Ingeborg Ter Laak, Jessica Polfjärd

Proposal for a decision

Article 1 – paragraph 1 – point 1

Decision (EU) 2015/1814

Article 1a – paragraph 3

Text proposed by the Commission	Amendment
(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.'

Or. en

Amendment 84

Stine Bosse

Proposal for a decision

Article 1 – paragraph 1 – point 1

Decision (EU) 2015/1814

Article 1a – paragraph 3

Text proposed by the Commission	Amendment
(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, the allowances referred to in that subparagraph that have not been released from the reserve shall no longer be valid.’

Or. en

Amendment 85

Proposal for a decision

Article 1 – paragraph 1 – point 2

Decision (EU) 2015/1814

Article 1a – paragraph 4

Text proposed by the Commission	Amendment
(2) In paragraph 4, the second sentence is replaced by the following: ‘The total number of allowances in circulation under this Article in a given year shall be the cumulative number of allowances covered by that Chapter that were issued, minus the cumulative tonnes of verified emissions covered by that Chapter for the period between 1 January [2027] and 31 December of that same given year and any allowances covered by that Chapter that were cancelled in accordance with Article 12(4) of Directive 2003/87/EC.’;	(2) In paragraph 4, the second sentence is replaced by the following:
	‘The total number of allowances in circulation under this Article in a given year shall be the cumulative number of allowances covered by that Chapter that were issued, minus the cumulative tonnes of verified emissions covered by that Chapter for the period between 1 January [2030] and 31 December of that same given year and any allowances covered by that Chapter that were cancelled in accordance with Article 12(4) of Directive 2003/87/EC.’;

Or. en

Amendment 86

Anja Arndt

Proposal for a decision

Article 1 – paragraph 1 – point 3

Decision (EU) 2015/1814

Article 1a – paragraph 5

Text proposed by the Commission	Amendment
(3) In paragraph 5, the following subparagraph is added: ‘In any given year, if the total number of allowances in circulation is between 210 million and 260 million, additional allowances shall be released from the reserve. The additional amount shall be calculated by taking 100 million and subtracting twice the difference between the total number of allowances in circulation and 210 million. This additional amount shall be added to the quantity of allowances to be auctioned by the Member States under Article 10(2) of Directive 2003/87/EC beginning on 1 September of that year.’;	deleted

Or. en

Justification

The introduction of additional ad hoc release rules further increases the complexity of the system and raises questions regarding the stability and predictability of ETS2. Against this background, further adjustment of the market stability reserve does not appear necessary or appropriate at this time.

Amendment 87

Marie Toussaint

Proposal for a decision

Article 1 – paragraph 1 – point 3

Decision (EU) 2015/1814

Article 1a – paragraph 5

Text proposed by the Commission	Amendment
(3) In paragraph 5, the following subparagraph is added: ‘In any given year, if the total number of allowances in circulation is between 210 million and 260 million, additional allowances shall be released from the reserve. The additional amount shall be calculated by taking 100 million and subtracting twice the difference between the total number of allowances in circulation and 210 million. This additional amount shall be added to the quantity of allowances to be auctioned by the Member States under Article 10(2) of Directive 2003/87/EC beginning on 1 September of that year.’;	(3) In paragraph 5, the following subparagraph is added: ‘In any given year, if the total number of allowances in circulation is between 210 million and 260 million, additional allowances shall be released from the reserve. The additional amount shall be calculated by taking 100 million and subtracting two and a half times the difference between the total number of allowances in circulation and 210 million. This additional amount shall be added to the quantity of allowances to be auctioned by the Member States under Article 10(2) of Directive 2003/87/EC beginning on 1 September of that year.’;

Or. en

Amendment 88

Stine Bosse

Proposal for a decision

Article 1 – paragraph 1 – point 3

Decision (EU) 2015/1814

Article 1a – paragraph 5

Text proposed by the Commission	Amendment
(3) In paragraph 5, the following subparagraph is added: ‘In any given year, if the total number of allowances in circulation is between 210 million and 260 million, additional allowances shall be released from the reserve. The additional amount shall be calculated by taking 100 million and subtracting twice the difference between the total number of allowances in circulation and 210 million. This additional amount shall be added to the quantity of allowances to be auctioned by the Member States under Article 10(2) of Directive 2003/87/EC beginning on 1 September of that year.’;	(3) In paragraph 5, the following subparagraph is added: ‘In any given year, if the total number of allowances in circulation is between 210 million and 230 million, additional allowances shall be released from the reserve. The additional amount shall be calculated by taking 50 million and subtracting twice the difference between the total number of allowances in circulation and 210 million. This additional amount shall be added to the quantity of allowances to be auctioned by the Member States under Article 10(2) of Directive 2003/87/EC beginning on 1 September of that year.’;

Or. en

Amendment 89

Jessica Polfjärd, Niels Flemming Hansen, Liesbet Sommen, Ingeborg Ter Laak, Lídia Pereira

Proposal for a decision

Article 1 – paragraph 1 – point 3

Decision (EU) 2015/1814

Article 1a – paragraph 5

Text proposed by the Commission	Amendment
(3) In paragraph 5, the following subparagraph is added: ‘In any given year, if the total number of allowances in circulation is between 210 million and 260 million, additional allowances shall be released from the reserve. The additional amount shall be calculated by taking 100 million and subtracting twice the difference between the total number of allowances in circulation and 210 million. This additional amount shall be added to the quantity of allowances to be auctioned by the Member States under Article 10(2) of Directive 2003/87/EC beginning on 1 September of that year.’;	(3) In paragraph 5, the following subparagraph is added: ‘In any given year, if the total number of allowances in circulation is between 210 million and 235 million, additional allowances shall be released from the reserve. The additional amount shall be calculated by taking 50 million and subtracting twice the difference between the total number of allowances in circulation and 210 million. This additional amount shall be added to the quantity of allowances to be auctioned by the Member States under Article 10(2) of Directive 2003/87/EC beginning on 1 September of that year.’;

Or. en

Justification

By limiting additional allowances released from the reserve and narrowing the range in which the mechanism applies, this amendment helps avoid excessive supply while preserving the carbon price signal.

Amendment 90

Li Andersson, Sebastian Everding

Proposal for a decision

Article 1 – paragraph 1 – point 3

Decision (EU) 2015/1814

Article 1a – paragraph 5

Text proposed by the Commission	Amendment
(3) In paragraph 5, the following subparagraph is added: ‘In any given year, if the total number of allowances in circulation is between 210 million and 260 million, additional allowances shall be released from the reserve. The additional amount shall be calculated by taking 100 million and subtracting twice the difference between the total number of allowances in circulation and 210 million. This additional amount shall be added to the quantity of allowances to be auctioned by the Member States under Article 10(2) of Directive 2003/87/EC beginning on 1 September of that year.’;	(3) In paragraph 5, the following subparagraph is added: ‘In any given year, if the total number of allowances in circulation is between 160 million and 210 million, additional allowances shall be released from the reserve. The additional amount shall be calculated by taking 100 million and subtracting twice the difference between the total number of allowances in circulation and 160 million. This additional amount shall be added to the quantity of allowances to be auctioned by the Member States under Article 10(2) of Directive 2003/87/EC beginning on 1 September of that year.

Or. en

Justification

The suggested amendment incorporates a more gradual intervention of the price mechanism but maintains the threshold of 210, instead of increasing it to 260. This ensures the smoother intervention of the trigger mechanism while not relaxing the conditions for when extra allowances can be released.

Amendment 91

Li Andersson, Sebastian Everding

Proposal for a decision

Article 1 – paragraph 1 – point 4

Decision (EU) 2015/1814

Article 1a – paragraph 7

Text proposed by the Commission	Amendment
(4) In paragraph 7, the following sentence is inserted between the first and second sentence: ‘In the event that allowances are released from the reserve in accordance with Article 30h(2) of Directive 2003/87/EC, 20 million more allowances shall be added to the amount to be released from the reserve.’.	deleted

Or. en

Justification

By limiting the price release trigger to 20 million allowances, possibly up to two times a year (see ETS Directive art 30(h)7 a total of 40 million tonnes can be released annually - less than the 60 Mt emission reductions mandated through the ETS2 cap. This ensures that emissions would decrease from year to year and that ETS2 stays aligned with its longer term pathway.

Amendment 92

Jana Nagyová, Ondřej Knotek, Antonín Staněk, Viktória Ferenc, Jorge Buxadé Villalba

Proposal for a decision

Article 1 – paragraph 1 – point 4

Decision (EU) 2015/1814

Article 1a – paragraph 7

Text proposed by the Commission	Amendment
(4) In paragraph 7, the following sentence is inserted between the first and second sentence: ‘In the event that allowances are released from the reserve in accordance with Article 30h(2) of Directive 2003/87/EC, 20 million more allowances shall be added to the amount to be released from the reserve.’.	(4) Paragraph 7 is replaced by the following:
	'The volumes to be released from the reserve in accordance with Article 30h of Directive 2003/87/EC shall be added to the quantity of allowances covered by Chapter IVa of that Directive to be auctioned by the Member States under Article 30d of that Directive. In the event that allowances are released from the reserve in accordance with Article 30h(2) of Directive 2003/87/EC:
	(a) for the first time, 15 million more allowances shall be added to the amount to be released from the reserve;
	(b) for the second time, 55 million more allowances shall be added to the amount to be released from the reserve;
	(c) for the third time, 80 million more allowances shall be added to the amount to be released from the reserve;
	(d) for the fourth time, 110 million more allowances shall be added to the amount to be released from the reserve.
	The volumes to be released from the reserve in accordance with that Article shall be evenly distributed during a period of two months, starting no later than one month from the date when the condition 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.'.

Or. en

Amendment 93

Kateřina Konečná

Proposal for a decision

Article 1 – paragraph 1 – point 4

Decision (EU) 2015/1814

Article 1a – paragraph 7

Text proposed by the Commission	Amendment
(4) In paragraph 7, the following sentence is inserted between the first and second sentence: ‘In the event that allowances are released from the reserve in accordance with Article 30h(2) of Directive 2003/87/EC, 20 million more allowances shall be added to the amount to be released from the reserve.’.	(4) Paragraph 7 is replaced by the following:
	'The volumes to be released from the reserve in accordance with Article 30h of Directive 2003/87/EC shall be added to the quantity of allowances covered by Chapter IVa of that Directive to be auctioned by the Member States under Article 30d of that Directive. In the event that allowances are released from the reserve in accordance with Article 30h(2) of Directive 2003/87/EC:
	(a) for the first time, 20 million more allowances shall be added to the amount to be released from the reserve.
	(b) for the second time, 60 million more allowances shall be added to the amount to be released from the reserve.
	(c) for the third time, 100 million more allowances shall be added to the amount to be released from the reserve. (d) for the fourth time, 140 million more allowances shall be added to the amount to be released from the reserve.
	(e) in the event that allowances are released from the reserve for the fifth time or any other following event, 140 million more allowances shall be added to the amount to be released from the reserve.
	The volumes to be released from the reserve shall be evenly distributed over a period of two months, starting no later than one month 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.'.

Or. en

Justification

This change would allow intervention to occur up to four times a year. If interventions were to follow on from each other (i.e., after the end of one cycle, the conditions for the next would be immediately met), I propose increasing their volume. Specifically, to 80 million for the second intervention, 120 million for the third intervention, and 160 million allowances for the fourth intervention (if necessary). Due to the postponement of the system launch to 2028, I propose to move the interventions to 2028-2030 or even longer (instead of the current 2027-2029).

Amendment 94

Anja Arndt

Proposal for a decision

Article 1 – paragraph 1 – point 4

Decision (EU) 2015/1814

Article 1a – paragraph 7

Text proposed by the Commission	Amendment
(4) In paragraph 7, the following sentence is inserted between the first and second sentence: ‘In the event that allowances are released from the reserve in accordance with Article 30h(2) of Directive 2003/87/EC, 20 million more allowances shall be added to the amount to be released from the reserve.’.	(4) In paragraph 7, the following text is inserted between the first and second sentences: "Where allowances are released from the reserve pursuant to Article 30h(2) of Directive 2003/87/EC, an additional 40 million allowances shall be added to the amount to be released from the reserve. If, despite this additional release, the average price of allowances cannot be stabilised at a level not exceeding EUR 45 (in 2020 prices) within a period of three months, the application of this Article and the market stability reserve for the sectors covered by Chapter IVa shall be temporarily suspended. In that case, the Commission shall immediately submit a legislative proposal to the European Parliament and the Council to suspend the auctioning of allowances in those sectors and to review the functioning of the system in order to avoid disproportionate burdens on citizens.

Or. en

Justification

The new emissions trading scheme for buildings and road transport carries the risk of significant cost increases for households, especially for lower-income citizens and rural regions that are highly dependent on private transport and fossil fuel heating systems.

The price cap mechanism provided for in Article 30h(2) of Directive 2003/87/EC is intended to prevent excessive price increases. If, despite additional certificate releases, this mechanism is unable to stabilise the price at a maximum of EUR 45 (in 2020 prices) within a reasonable period of time, this shows that the system is not fulfilling its own protective function.

In such a case, an automatic suspension of the application of the system for the sectors concerned is justified in order to avoid disproportionate financial burdens on citizens and to give the legislator time for a fundamental reassessment of the regulation.

Amendment 95

Anna Zalewska

on behalf of the ECR Group

Proposal for a decision

Article 1 – paragraph 1 – point 4

Decision (EU) 2015/1814

Article 1a – paragraph 7

Text proposed by the Commission	Amendment
(4) In paragraph 7, the following sentence is inserted between the first and second sentence: ‘In the event that allowances are released from the reserve in accordance with Article 30h(2) of Directive 2003/87/EC, 20 million more allowances shall be added to the amount to be released from the reserve.’.	(4) In paragraph 7, the following sentence is inserted between the first and second sentence: ‘In the event that allowances are released from the reserve in accordance with Article 30h(2) of Directive 2003/87/EC, at least 20 million more allowances shall be added to the amount to be released from the reserve in order to effectively prevent excessive price increase.’.

Or. en

Justification

The Commission should have a possibility to act faster and more effectively to address price increases. Therefore, there should be a possibility to release more allowances from the MSR than 20 million allowances to better prevent excessive price increase.

Amendment 96

Jessica Polfjärd, Niels Flemming Hansen, Liesbet Sommen, Ingeborg Ter Laak, Lídia Pereira

Proposal for a decision

Article 1 – paragraph 1 – point 4

Decision (EU) 2015/1814

Article 1a – paragraph 7

Text proposed by the Commission	Amendment
(4) In paragraph 7, the following sentence is inserted between the first and second sentence: ‘In the event that allowances are released from the reserve in accordance with Article 30h(2) of Directive 2003/87/EC, 20 million more allowances shall be added to the amount to be released from the reserve.’.	(4) In paragraph 7, the following sentence is inserted between the first and second sentence: ‘In the event that allowances are released from the reserve in accordance with Article 30h(2) of Directive 2003/87/EC, 10 million more allowances shall be added to the amount to be released from the reserve.’.

Or. en

Justification

By lowering the amount from 20 million to 10 million allowances it limit the increase in market supply and supports the stability and effectiveness of the carbon price signal.

Amendment 97

Stine Bosse

Proposal for a decision

Article 1 – paragraph 1 – point 4

Decision (EU) 2015/1814

Article 1a – paragraph 7

Text proposed by the Commission	Amendment
(4) In paragraph 7, the following sentence is inserted between the first and second sentence: ‘In the event that allowances are released from the reserve in accordance with Article 30h(2) of Directive 2003/87/EC, 20 million more allowances shall be added to the amount to be released from the reserve.’.	(4) In paragraph 7, the following sentence is inserted between the first and second sentence: ‘In the event that allowances are released from the reserve in accordance with Article 30h(2) of Directive 2003/87/EC, 15 million more allowances shall be added to the amount to be released from the reserve.’.

Or. en

Amendment 98

Proposal for a decision

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

Decision (EU) 2015/1814

Text proposed by the Commission	Amendment
	(4 a) Postponement of the operation of emissions trading for buildings, road transport and additional sectors
	The operation of emissions trading for buildings, road transport and additional sectors set out in Chapter IVa of Directive 2003/87 shall be postponed until 2030. The rules set out in Article 30(k)(2) letters (a) to (e) of Directive 2003/87 shall apply. The provisions of Article 10a(8b) of Directive 2003/87 shall apply also in 2026.4a
	_________________
	4a Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26, ELI: http://data.europa.eu/eli/reg/2018/842/oj). 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).

Or. en

Amendment 99

Marie Toussaint

Proposal for a decision

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

Decision (EU) 2015/1814

Article 1a – paragraph 7 – sentence 2

Text proposed by the Commission	Amendment
	(4 a) 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 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.’.

Or. en

Amendment 100

Li Andersson, Sebastian Everding

Proposal for a decision

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

Decision (EU) 2015/1814

Article 1a – paragraph 9 a (new)

Text proposed by the Commission	Amendment
	(4 a) The following paragraph is added:
	'(9a) All revenues related to released allowances from the market stability reserve for the buildings, road transport and additional sectors shall be added to the Social Climate Fund, established by Regulation (EU) 2023/955 of the European Parliament and of the Council1a, on top of the current monetary limit.’
	_________________
	1a Regulation (EU) 2023/955 of the European Parliament and of the Council of 10 May 2023 establishing a Social Climate Fund and amending Regulation (EU) 2021/1060 (OJ L 130, 16.5.2023, p. 1, ELI:http://data.europa.eu/eli/reg/2023/955/oj).

Or. en

Justification

Addressing potential social impacts is the stated intent of this MSR2 revision and many stakeholders calling for the weakening of ETS2 through increased releases from MSR2. However, the current proposal does not adequately address that concern. Weakening climate policy is not the way to address social impacts, boosting complementary policies and use of revenues can actually help alleviate social impacts in a sustainable manner.

Therefore, all revenues from auctioning MSR2 allowances should be earmarked towards the Social Climate Fund, but as additional SCF revenues on top of the current cap to ensure the SCF is actually increased. This will actually increase available funds to be used to support vulnerable households and ensure no one is left behind in the necessary climate and energy transition. The SCF sunset would need revisiting to align with the MSR2 timeline.

Amendment 101

Proposal for a decision

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

Decision (EU) 2015/1814

Article 1b (new)

Text proposed by the Commission	Amendment
	(4 b) Article 1b
	Emergency suspension
	1. If interventions as described in Article 1a (4), (5) and (7) prove insufficient, and in case of an exceptional price deviation exceeding maximum price of allowances level of €30 in 2026 prices has occurred, with negative economic or societal consequences for the industry or citizens required to secure energy price stability and affordability, the Commission shall adopt implementing acts which are both necessary and justifiable in an emergency. Such implementing acts may temporarily suspend the auctioning of allowances and the application of the relevant provisions of this Regulation to the extent and for such a period as is strictly necessary.
	2. Implementing acts pursuant to paragraph 1 shall remain in force for a period not exceeding 12 months. If after that period the specific problems referred to in paragraph 1 persist, the Commission shall submit an appropriate legislative proposal to renew that period.
	3. The Commission shall inform the European Parliament and the Council of any act adopted under paragraph 1 without undue delay.

Or. en

Amendment 102

Anna Zalewska

on behalf of the ECR Group

Proposal for a decision

Article 1 – paragraph 1 a (new)

Decision (EU) 2015/1814

Text proposed by the Commission	Amendment
	The Commission shall, as part of the upcoming review of Directive 2003/87/EC, assess the possibility and propose measures to significantly lower the maximum allowance price referred to in Article 30h(2) of Directive 2003/87/EC, in order to ensure social acceptance of the introduction of the emissions trading system for buildings, road transport and additional sectors, prevent deepening of energy poverty and transport exclusions and avoid price energy and fuels price increase.

Or. en

Justification

The Commission, as part of the upcoming EU ETS Directive review, assess the possibility to introduce measures to significantly lower the maximum price of the EU ETS2 allowance, currently set at the level of EUR 45 with a view to ensure social acceptance of the ETS2 introduction and prevent adverse financial effects on low-income and vulnerable households.

Amendment 103

Jana Nagyová, Ondřej Knotek, Antonín Staněk, Viktória Ferenc, Jorge Buxadé Villalba, Mathilde Androuët, Marie-Luce Brasier-Clain, Silvia Sardone

Proposal for a decision

Article 1 a (new)

Decision (EU) 2015/1814

Text proposed by the Commission	Amendment
	Article1a
	Directive 2003/87/EC is amended as follows:
	(1) in Article 30d, paragraph 2 is amended as follows:
	‘The auctioning of the allowances under this Chapter shall start in 2027 with an amount corresponding to 160 % of the auction volumes for 2027 established on the basis of the Union-wide quantity of allowances for that year and the respective auction shares and volumes pursuant to paragraphs 3 to 6 of this Article.
	In 2027, 2200 million allowances covered by this Chapter shall be created as holdings in the market stability reserve pursuant to Article 1a(3) of Decision (EU) 2015/1814.’;
	(2) in Article 30e, paragraph 3 is replaced by the following:
	‘By way of derogation from paragraphs 1 and 2 of this Article, a competent authority of a Member State may exempt the entity located in its territory from the obligation to surrender allowances under paragraph 2 of this Article for a given reference year.’;
	(3) in Article 30h, paragraph 2 is amended as follows:
	‘Where the average price of allowances referred to in paragraph 1 of this Article exceeds a price of EUR 25 for a period of two consecutive months, 20 million allowances covered by this Chapter shall be released from the market stability reserve in accordance with Article 1a(7) of Decision (EU) 2015/1814. Indexation based on the European index of consumer prices for 2020 shall apply.’;
	(4) in Article 30i, the following paragraph before paragraph 1 is inserted:
	‘By 15 July 2026, the Commission shall assess the impact of ETS2 on the competitiveness of Union companies, in particular SMEs, and the wellbeing of EU citizens. Where appropriate, the Commission shall present a proposal to suspend/repeal Chapter IV of Directive (EU) 2023/959 and consequently Article 1a of Decision (EU) 2015/1814.’

Or. en

Amendment 104

Marie Toussaint

Proposal for a decision

Article 1 a (new)

Decision (EU) 2015/1814

Text proposed by the Commission	Amendment
	Article1a
	Amendments to Regulation (EU) 2023/955
	Regulation (EU) 2023/955 is amended as follows:
	(1) In Article 1, the first sentence is replaced by the following:
	‘This Regulation established the Social Climate Fund (the ‘Fund’) for the period from 2026 to 2040.’
	(2) In Article 6, paragraph 1, point (h) is replaced by the following:
	‘(h) envisaged milestones, targets and an indicative comprehensive timetable for the implementation of the measures and investments to be completed by 31 July 2032 and 31 December 2040 respectively;’
	(3) In Article 10, paragraph 1, the first sentence is replaced by the following:
	‘All revenues generated pursuant to Articles 10a(8b) and 30d(3) of Directive 2003/87/EC, as well as thirty percent of the remaining amount of allowances referred to in Article 30d(1) after deduction of the amount of allowances referred to in Articles 30d(2) and 30d(3) shall be made available for implementation of the Fund.’

Or. en

Amendment 105

Marta Temido, Annalisa Corrado, Kristian Vigenin, Tiemo Wölken, César Luena, Thomas Pellerin-Carlin, Heléne Fritzon

Proposal for a decision

Article 1 a (new)

Decision (EU) 2015/1814

Text proposed by the Commission	Amendment
	Article1a
	Regulation (EU) 2023/955 is amended as follows:
	(1) In Article 1, the first sentence is replaced by the following:
	'This Regulation establishes the Social Climate Fund (the ‘Fund’) for the period from 2026 to 2040.'.
	(2) In Article 6, paragraph 1, point (h) is replaced by the following:
	'(h) envisaged milestones, targets and an indicative comprehensive timetable for the implementation of the measures and investments to be completed by 31 July 2032 and 31 December 2040 respectively;'.
	(3) In Article 10, the following paragraph is inserted:
	'1a. In addition to the revenue assigned to the Social Climate Fund under paragraph 1, all revenues from auctioning the allowances specified in paragraphs 5, 6 and 7 of article 1a of the Decision (EU) 2015/1814 of the European Parliament and of the Council of 6 October 2015 shall be made available for the Social Climate Fund. The revenues from that auctioning shall constitute external assigned revenue in accordance with Article 21(5) of Regulation (EU, Euratom) 2018/1046.'.

Or. en

Amendment 106

Li Andersson, Sebastian Everding

Proposal for a decision

Article 1 a (new)

Decision (EU) 2015/1814

Article 3

Text proposed by the Commission	Amendment
	Article1a
	1a. In Article 3 of Decision (EU) 2015/1814, the following paragraph is added:
	'Within 12 months from ... [the entry into force of this amending Decision], the Commission shall carry out an impact assessment and evaluation of the climate impact of the changes made by Decision (EU) 2026/.... of the European Parliament and of the Council1a +and shall submit a report to the European Parliament and Council thereof, taking into account:
	(a) the estimated climate impact of the changes in the provisions made by Decision (EU) 2026/....++(b) the potential additional measures needed to address the climate ambition gap at Union level in the case of any.
	_________________
	+ OJ: Please insert in the text the number of the Decision contained in document 2025/0380(COD) and insert the number, date and OJ reference of that Decision in the footnote.
	++ OJ: Please insert in the text the number of the Decision contained in document 2025/0380(COD) and insert the number, date and OJ reference of that Decision in the footnote.
	1a Decision (EU) 2026/.... 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 (OJ L,..., ELI:...).

Or. en

Amendment 107

Marie-Luce Brasier-Clain, Mathilde Androuët, Anne-Sophie Frigout, Ondřej Knotek, Jana Nagyová, Antonín Staněk, Silvia Sardone, Roman Haider

Proposal for a decision

Article premier a (new)

Decision (EU) 2015/1814

Text proposed by the Commission	Amendment
	1a.
	Postponing the emissions trading system for buildings, road transport and additional sectors
	In Article 30k of Directive (EU) 2023/959, paragraph 2 is amended as follows: ‘Where one or both of the conditions referred to in paragraph 1 are met, the Commission may decide to postpone the application of Chapter IVa by one year, or present a legislative proposal for the repeal of Chapter IVa of Directive (EU) 2023/959 and, consequently, Article 1a of Decision (EU) 2015/1814.’

Or. fr

Amendment 108

Silvia Sardone, Susanna Ceccardi, Jorge Buxadé Villalba, Viktória Ferenc, Marie-Luce Brasier-Clain, Jana Nagyová, Roman Haider, Mathilde Androuët, Ondřej Knotek

Proposal for a decision

Article 1 a (new)

Decision (EU) 2015/1814

Text proposed by the Commission	Amendment
	Article1a
	Repeal of the Emissions Trading System for Buildings, Road Transport and additional Sectors
	Chapter IVa of Directive (EU) 2023/959 is deleted.
	Article 1a of Decision (EU) 2015/1814 is deleted.

Or. en

Amendment 109

Anna Zalewska

on behalf of the ECR Group

Aurelijus Veryga, Laurence Trochu, Nicola Procaccini, Pietro Fiocchi, Michele Picaro, Stefano Cavedagna, Paolo Inselvini, Antonella Sberna, Sergio Berlato, Jacek Ozdoba, Jadwiga Wiśniewska

Proposal for a decision

Article 1 a (new)

Decision (EU) 2015/1814

Text proposed by the Commission	Amendment
	Article1a
	Repeal of the emissions trading system for buildings, road transport and additional sectors
	The Chapter IVa of Directive 2003/87/EC is deleted.

Or. en

Justification

The entry into force of the EU ETS2 should be deleted.

Amendment 110

Anna Zalewska

on behalf of the ECR Group

Alexandr Vondra, Nicola Procaccini, Pietro Fiocchi, Michele Picaro, Stefano Cavedagna, Paolo Inselvini, Antonella Sberna, Sergio Berlato, Jacek Ozdoba, Jadwiga Wiśniewska, Aurelijus Veryga, Laurence Trochu

Proposal for a decision

Article 1 b (new)

Decision (EU) 2015/1814

Text proposed by the Commission	Amendment
	Article1b
	Postponement of the operation of emissions trading for buildings, road transport and additional sectors
	The operation of emissions trading for buildings, road transport and additional sectors set out in Chapter IVa of Directive 2003/87/EC is postponed until 2030. The rules set out in Article 30(k)(2), points (a) to (e), of Directive 2003/87 shall apply. The provisions of Article 10a(8b) of Directive 2003/87/EC shall apply also in 2026.

Or. en

Justification

Entry into force of the ETS2 should be postponed by 2030.

Amendment 111

Anja Arndt

Proposal for a decision

Article 2 – paragraph 1

Text proposed by the Commission	Amendment
This Decision shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.	This Decision shall enter into force on the twentieth day following its publication in the Official Journal of the European Union, provided that and after the Commission has submitted a comprehensive and independent ex-ante impact assessment and the European Parliament and the Council have examined it. This impact assessment shall include, in particular:
	(a) a realistic and transparent assessment of the expected price range for ETS2 allowances and the resulting additional costs for households, transport users, small and medium-sized enterprises and micro-enterprises;
	(b) a detailed analysis of the distributional effects between income groups, regions and Member States, including the impact on rural areas and structurally weak regions;
	(c) an assessment of the interactions between ETS2 and existing national CO₂ pricing and regulatory instruments, in particular with regard to possible double burdens on citizens and businesses;
	(d) an examination of specific mechanisms for the full and effective relief of vulnerable households, vulnerable road users and micro-enterprises, including the possibility of national compensation measures;
	(e) an assessment of the impact on competitiveness, energy prices and social stability within the European Union.

Or. en

Justification

Given the potentially significant economic and social impact of ETS2 on citizens, businesses and the competitiveness of the European economy, a comprehensive, transparent and independent ex-ante impact assessment is essential before any further changes or extensions to the system are made.

In particular, it must be clearly understandable what price developments are to be expected, what burdens will be placed on households and transport users, and how these will be distributed among Member States, regions and income groups. It must also be ensured that no additional double burdens arise as a result of parallel national measures.

Such an impact assessment is necessary to ensure that new EU regulatory measures do not place a disproportionate economic and social burden on citizens, road users and small and medium-sized enterprises, and that any unintended negative effects can be identified and avoided at an early stage.