On 27 November 2025 the European Commission adopted a proposal to amend the Market Stability Reserve (MSR) for the upcoming emissions trading system for road transport and buildings (ETS 2). The amendment introduces a top‑up mechanism that would double the number of allowances released if the carbon price rises above €45 per tonne (2020 prices), allowing up to 80 million allowances per year from the start of auctioning until 2029. It also extends the validity of ETS 2 allowances in the reserve beyond 2030, making the full 600 million allowances available to be released to stabilize prices. A further buffer is proposed to trigger earlier and smoother interventions. The Commission will also push for an earlier start of ETS 2 auctions and a front‑loading facility that could provide up to €6 billion in revenues in 2026‑2027.
© European Union Adapted from https://www.europa.eu , licensed under CC BY‑4.0 (https://creativecommons.org/licenses/by/4.0/ ).
https://climate.ec.europa.eu/news-other-reads/news/commission-proposes-targeted-adjustments-market-stability-reserve-decision-support-smoother-start-2025-11-27_en
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