Skip to content
Adopted text

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

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

Official HTML ↗ PDF DOCX
✦ In shortFull text
✦ In short · AI summary of this text, generated 4 Sept 2026

Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

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

Key points

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

Who is affected

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

Figures and deadlines

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