EU carbon rules / Regulations / ETS2 Market Stability Reserve Amendment
In progress Draft Carbon pricing & border adjustment
ETS2 Market Stability Reserve Amendment
Maintain mechanism stability before 2028 and avoid sharp price fluctuations
- Reference
- Council/Parliament provisional agreement, 2026-06
- Key date
- 2026-06
- Applies to
- Sectors covered by ETS2
01
Who the regulation applies to
This regulation applies to:
- A separate part for bringing ETS2 allowances into the Market Stability Reserve (MSR) (managed separately from EU ETS allowances)
- From 2028-09-01, ETS2 allowances are placed, held and released separately
- Absorption/release rules triggered by the total number of allowances in circulation (TNAC) thresholds apply; and it is proposed to abolish the allowance invalidation mechanism in MSR2 in 2031 and add a buffer to stabilise prices
The local regmap does not specify the primary source text; this entry is taken from Article 2 of Directive (EU) 2023/959 amending Decision (EU) 2015/1814 (inserting Article 1a and amending Article 1(5)). See the official EUR-Lex text.
The following provisions define its scope:
Article 1a(1)–(2) of Decision (EU) 2015/1814, as inserted by Directive (EU) 2023/959 — MSR for the buildings, road transport and additional sectors
1. Allowances covered by Chapter IVa of Directive 2003/87/EC shall be placed in and released from a separate section of the reserve established pursuant to Article 1 of this Decision, in accordance with the rules set out in this Article. 2. The placing of allowances in the reserve under this Article shall operate from 1 September 2028. The allowances covered by Chapter IVa of Directive 2003/87/EC shall be placed in, held in, and released from the reserve separately from the allowances covered by Article 1 of this Decision.
Article 1(5) of Decision (EU) 2015/1814, as amended by Directive (EU) 2023/959 — TNAC intake
5. In any given year, if the total number of allowances in circulation is between 833 million and 1 096 million, a number of allowances equal to the difference between the total number of allowances in circulation, as set out in the most recent publication as referred to in paragraph 4 of this Article, and 833 million shall be deducted from the quantity of allowances to be auctioned by the Member States under Article 10(2) of Directive 2003/87/EC and shall be placed in the reserve over a period of 12 months beginning on 1 September of that year.
02
What the regulation requires
| Duty | Trigger | Evidence | Timing |
Monitor market stability reserve adjustments
Under the provisional agreement, allowances are released into or absorbed by the MSR when ETS2 prices trigger it. | Operation of the ETS2 market | Market data and MSR decisions | After the provisional agreement of 2026-06 |