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

TA-10-2026-0279 · P10_TA(2026)0279 · PE781.492

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Parliament's position at first reading on a proposed decision amending Decision (EU) 2015/1814 on the market stability reserve for the buildings, road transport and additional sectors emissions trading system. It keeps allowances placed in the reserve valid beyond 31 December 2030 and changes how allowances are released when the total number in circulation is between 210 million and 260 million. It adds 20 million allowances to releases made under Article 30h(2) of Directive 2003/87/EC and spreads releases evenly over three months. It requires the Commission to publish the total number of allowances in circulation each year by 1 June, first by 1 June 2028, and to assess price stability mechanisms in its review.

Key points

  1. Allowances placed in the market stability reserve for buildings, road transport and additional sectors that have not been released remain valid beyond 31 December 2030.
  2. If the total number of allowances in circulation is between 210 million and 260 million in a given year, additional allowances are released from the reserve.
  3. The additional amount is calculated by taking 100 million and subtracting twice the difference between the total number of allowances in circulation and 210 million.
  4. That additional amount is added to the quantity of allowances to be auctioned by member states under Article 10(2) of Directive 2003/87/EC beginning on 1 September of that year.
  5. Volumes released under Article 30h of Directive 2003/87/EC are added to the allowances covered by Chapter IVa to be auctioned by member states under Article 30d of that Directive.
  6. Where allowances are released under Article 30h(2) of Directive 2003/87/EC, 20 million more allowances are added to the amount to be released from the reserve.
  7. Released volumes are evenly distributed over three months, starting no later than two months after the conditions were met as published in the Official Journal under Article 30h(8).
  8. The Commission publishes the total number of allowances in circulation covered by Chapter IVa each year by 1 June of the subsequent year, separately from allowances under Article 1(4).
  9. The total number of allowances in circulation is the cumulative number issued minus cumulative verified emissions from 1 January 2028 to 31 December of that year and any allowances cancelled under Article 12(4).
  10. The first publication takes place by 1 June 2028.
  11. The review under Article 3 considers the number of remaining allowances taking into account both environmental integrity and social fairness.
  12. The Commission's report on the new emissions trading system includes an assessment of price stability mechanisms under Article 30h and the market stability reserve rules, including whether the excessive price measure should continue after 2029.

Who is affected

  • Member states, which auction additional allowances under Article 10(2) of Directive 2003/87/EC and spend revenues on climate and energy purposes.
  • Market participants in the buildings, road transport and additional sectors emissions trading system, for whom predictability and stability are improved.
  • The Commission, which must publish allowance numbers annually and assess price stability mechanisms in its review.
  • Households and transport users, particularly vulnerable ones, who should be able to transition to clean heating and road transport alternatives.

Figures and deadlines

  • 31 December 2030, beyond which unreleased allowances remain valid.
  • 260 million allowances, the lower threshold for the more gradual release mechanism.
  • 210 million and 260 million, the range triggering additional release.
  • 100 million, the base figure for calculating the additional release amount.
  • 1 September, the date from which additional allowances are added to auctions.
  • 20 million more allowances added when release occurs under Article 30h(2).
  • Three months, the period over which released volumes are evenly distributed.
  • 1 June 2028, the first publication date for allowance numbers.

Legal basis: Article 192(1) of the Treaty on the Functioning of the European Union.