A provisional agreement would allow the EU Emissions Trading System’s market stability reserve to hold up to 700 million allowances, the European Commission said on 22 October in its summary of the agreement. The Commission proposed a broader modernisation of the reserve on 17 July 2026.
Under the current system, allowances in the reserve above 400 million are invalidated. Under the current system, allowances in the market stability reserve above 400 million are invalidated. After adoption by Parliament and the Council, the changes will be published in the Official Journal of the European Union and take effect immediately.
EU Commissioner for Climate Policy Wopke Hoekstra said the agreement would improve market stability and predictability over the next ten years. The Commission proposed a broader modernisation of the reserve on 17 July 2026.
The proposal still requires technical finalisation and formal approval by the European Parliament and the Council. After both adopt it, the changes will be published in the Official Journal of the European Union and take effect immediately.
