Plenary report, 10 September 2026
On the proposal for a decision of the European Parliament and of the Council amending Decision (EU) 2015/1814 as regards ceasing the invalidation of allowances in the market stability reserve
Report A-10-2026-0230 · (COM(2026)0153 – C100093/2026 – 2026/0085(COD))
Committee on the Environment, Climate and Food Safety · Rapporteur: Pierfrancesco Maran
- Voted on Tuesday, 15 September 2026 · Passed 367 for, 240 against, 59 abstained · See the decision →
- Where the law stands · dossier 2026/0085 →
AI:In short
Parliament's amended version of the Commission proposal to amend Decision (EU) 2015/1814 on the market stability reserve. It keeps the invalidation of allowances until 28 February 2027, then raises the threshold above which allowances in the reserve become invalid from 400 million to 650 million from 1 March 2027. The amended recitals add the first global stocktake outcome of 13 December 2023 and the United Arab Emirates Consensus, and describe the reserve as addressing the historical oversupply in the EU emissions trading system and improving market resilience. The report also changes the citation to say the Committee of the Regions was consulted, and calls on the Commission to refer the matter to Parliament again if it substantially amends its proposal.
Position. The committee proposes to adopt Parliament's first-reading position with amendments to the Commission proposal, keeping invalidation until 28 February 2027 and raising the threshold to 650 million allowances from 1 March 2027. The rapporteur states the draft report does not modify the Commission's proposal as a substantive position, pending the wider ETS review.
Key points
- Parliament adopts its position at first reading on the proposal to amend Decision (EU) 2015/1814 on ceasing the invalidation of allowances in the market stability reserve.
- The citation is changed so that the Committee of the Regions is consulted rather than having given an opinion.
- Recital 1 adds that the commitment to limit temperature increase was reinforced by the first global stocktake outcome adopted on 13 December 2023 in Dubai and the United Arab Emirates Consensus.
- Recital 2 states the market stability reserve was set up to address the historical oversupply in the EU emissions trading system and the risk of supply and demand imbalances.
- Recital 3 states allowances held in the reserve above 650 million should be considered invalid as of 1 March 2027, to increase long-term market predictability and align with the Union's 2040 and 2050 climate targets.
- The provision that Article 1(5a) would cease to apply from the date of entry into force of the act is deleted.
- Article 1(5a) is replaced: from 2023 until 28 February 2027, allowances held in the reserve above 400 million are no longer valid.
- From 1 March 2027, allowances held in the reserve above 650 million are no longer valid.
- Parliament calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal.
Who is affected
- Participants in the EU emissions trading system, who face a higher reserve threshold of 650 million allowances from 1 March 2027.
- The Commission, which must refer the matter to Parliament again if it substantially amends its proposal.
Figures and deadlines
- 400 million allowances: threshold above which allowances in the reserve are no longer valid until 28 February 2027.
- 650 million allowances: threshold above which allowances in the reserve are no longer valid from 1 March 2027.
- 1 March 2027: date from which the 650 million threshold applies.
- 28 February 2027: end date for the 400 million threshold.
- 13 December 2023: date the first global stocktake outcome was adopted in Dubai.
Legal basis. Article 294(2) and Article 192(1) of the Treaty on the Functioning of the European Union.
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Draft european parliament legislative resolution 41 paragraphs
(COM(2026)0153 – C100093/2026 – 2026/0085(COD))
(Ordinary legislative procedure: first reading)
The European Parliament,
–having regard to the Commission proposal to Parliament and the Council (COM(2026)0153),
–having regard to Article 294(2) and Article 192(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C100093/2026),
–having regard to Article 294(3) of the Treaty on the Functioning of the European Union,
–having regard to the opinion of the European Economic and Social Committee of 29 April 2026,
–after consulting the Committee of the Regions,
–having regard to Rule 60 of its Rules of Procedure,
–having regard to the report of the Committee on the Environment, Climate and Food Safety (A10-0230/2026),
1.Adopts its position at first reading hereinafter set out;
2.Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;
Read the rest (29 paragraphs)
3.Instructs its President to forward its position to the Council, the Commission and the national parliaments.
Amendment 1
Proposal for a regulation
Citation 5
| Text proposed by the Commission | Amendment |
|---|---|
| Having regard to the opinion of the Committee of the Regions2 , | After consulting the Committee of the Regions, |
| 2 OJ C , , p. . |
Amendment 2
Proposal for a regulation
Recital 1
| Text proposed by the Commission | Amendment |
|---|---|
| (1) The Paris Agreement adopted under the United Nations Framework Convention on Climate Change, approved on behalf of the European Union by Council Decision (EU) 2016/18413 , (the ‘Paris Agreement’) entered into force in November 2016. The Parties to the Paris Agreement have agreed to hold the increase in the global average temperature to well below 2 °C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1,5 °C above pre-industrial levels. | (1) The Paris Agreement adopted under the United Nations Framework Convention on Climate Change (UNFCCC), approved on behalf of the European Union by Council Decision (EU) 2016/18413 , (the ‘Paris Agreement’) entered into force in November 2016. The Parties to the Paris Agreement have agreed to hold the increase in the global average temperature to well below 2 °C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1,5 °C above pre-industrial levels. That commitment has been reinforced with the adoption under the UNFCCC of the outcome of the first global stocktake on 13 December 2023 in Dubai, in which the Conference of the Parties to the UNFCCC, serving as the meeting of the Parties to the Paris Agreement, resolved to accelerate efforts to limit the temperature increase to 1,5 °C and adopted the United Arab Emirates Consensus. |
| 3 Council Decision (EU) 2016/1841 of 5 October 2016 on the conclusion, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (OJ L 282, 19.10.2016, p. 1, ELI: http://data.europa.eu/eli/dec/2016/1841/oj). | 3 Council Decision (EU) 2016/1841 of 5 October 2016 on the conclusion, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (OJ L 282, 19.10.2016, p. 1, ELI: http://data.europa.eu/eli/dec/2016/1841/oj). |
Amendment 3
Proposal for a regulation
Recital 2
| Text proposed by the Commission | Amendment |
|---|---|
| (2) Decision (EU) 2015/1814 of the European Parliament and of the Council4 established a market stability reserve in order to address the risk of supply and demand imbalances in the European carbon market and to improve its resilience to shocks. | (2) Decision (EU) 2015/1814 of the European Parliament and of the Council4 established a market stability reserve in order to address the historical oversupply that had accumulated in the system for greenhouse gas emission allowance trading within the Union (EU ETS), established by Directive 2003/87/EC of the European Parliament and of the Council4a, and to address the risk of supply and demand imbalances in the European carbon market, thereby improving its resilience to shocks. |
| 4 Decision (EU) 2015/1814 of the European Parliament and of the Council of 6 October 2015 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and amending Directive 2003/87/EC (OJ L 264, 9.10.2015, p. 1, ELI: http://data.europa.eu/eli/dec/2015/1814/oj). | 4 Decision (EU) 2015/1814 of the European Parliament and of the Council of 6 October 2015 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and amending Directive 2003/87/EC (OJ L 264, 9.10.2015, p. 1, ELI: http://data.europa.eu/eli/dec/2015/1814/oj). |
| 4a Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32, ELI: http://data.europa.eu/eli/dir/2003/87/oj). |
Amendment 4
Proposal for a regulation
Recital 3
| Text proposed by the Commission | Amendment |
|---|---|
| (3) An analysis of the orderly functioning of the European carbon market and the market stability reserve carried out in accordance with Article 3 of Decision (EU) 2015/1814 indicates that, in order to increase long-term market predictability, allowances held in the reserve above 400 million allowances should no longer be considered invalid. | (3) To ensure the orderly functioning of the European carbon market and of the market stability reserve and to increase long-term market predictability, while also ensuring the contribution and alignment of allowances to the Union’s 2040 and 2050 climate targets and protecting against the risk of supply and demand imbalances of allowances on the market and in the market stability reserve, allowances held in the reserve above 650 million allowances should be considered invalid as of 1 March 2027. |
Amendment 5
Proposal for a regulation
Article 1 – paragraph 1
Decision (EU) 2015/1814
Article 5 – paragraph 2
| Text proposed by the Commission | Amendment |
|---|---|
| In Article 5 of Decision (EU) 2015/1814, the following paragraph is added: | deleted |
| Article 1(5a) shall cease to apply from [insert date of entry into force of this act]. |
Amendment 6
Proposal for a regulation
Article 1 – paragraph 1 a (new)
Decision (EU) 2015/1814
Article 1 – paragraph 5a
| Present text | Amendment |
|---|---|
| In Article 1 of Decision (EU) 2015/1814, paragraph 5a is replaced by the following: | |
| 5a. Unless otherwise decided in the first review carried out in accordance with Article 3, from 2023 allowances held in the reserve above 400 million allowances shall no longer be valid. | ‘5a. Unless otherwise decided in the first review carried out in accordance with Article 3, from 2023 until 28 February 2027, allowances held in the reserve above 400 million allowances shall no longer be valid. |
| From 1 March 2027, allowances held in the reserve above 650 million allowances shall no longer be valid.’ |
Explanatory statement 6 paragraphs
On 31 March 2026, the European Commission presented a targeted legislative proposal to cease the invalidation of allowances in the Market Stability Reserve (MSR) established by Decision (EU) 2015/1814.
On 12 May 2026, the Coordinators of the Committee on the Environment, Climate and Food Safety (ENVI) agreed to appoint the Chair of the Committee as Rapporteur for the proposal.
In light of this institutional mandate, the Chair has chosen to not modify the Commission’s proposal in the draft report. This however should not be understood as a substantive position on the Commission’s proposal, but rather the fulfilment of an institutional mandate to allow the parliamentary work to proceed.
Moreover, the Coordinators expressed the view that the MSR proposal should be examined also within the broader context of the upcoming comprehensive review of the EU Emissions Trading System (ETS), which is expected to be presented in mid-July 2026. The Chair therefore considers it premature, at this stage, to adopt a definitive position on the MSR proposal in isolation from the wider ETS reform.
The present draft report should therefore not be understood as a starting negotiating position, nor as an endorsement of the Commission proposal as such. It is intended instead as the opening of a discussion enabling all political groups and Members to table amendments, to articulate their views as part of a proper and inclusive parliamentary discussion, and to avoid prejudging a substantive debate until the full picture of the ETS review is available.
The Chair looks forward to that debate and invites Members across political groups to engage constructively in that process
Annex: declaration of input 2 paragraphs
Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he included in his report input on matters pertaining to the subject of the file that he received, in the preparation of the report, prior to the adoption thereof in committee, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:
| 1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register |
| Bellona Europa (TR: 29934726424-76) |
| Cambridge Institute for Sustainability Leadership (TR: 610535346745-80) |
| Carbon Market Watch (TR: 75365248559-90) |
| Climate Action Network Europe (TR: 55888811123-49) |
| Öko-Institut e.V. (TR: 699207113296-93) |
| Third Generation Environmentalism Ltd (TR: 07783117686-61) |
| World Wide Fund for Nature Belgium (TR: 340103933893-82) |
| 2. Representatives of public authorities of third countries, including their diplomatic missions and embassies |
| - |
Procedure pages
How the committees handled the text, and how their members voted on it.
Procedure – committee responsible 1 paragraph
| Title | Amending Decision (EU) 2015/1814 as regards ceasing the invalidation of allowances in the market stability reserve | |
| References | COM(2026)0153 – C10-0093/2026 – 2026/0085(COD) | |
| Date submitted to Parliament | 1.4.2026 | |
| Committee(s) responsible Date announced in plenary | ENVI 27.4.2026 | |
| Rapporteurs Date appointed | Pierfrancesco Maran 29.5.2026 | |
| Discussed in committee | 6.7.2026 | |
| Date adopted | 10.9.2026 | |
| Result of final vote | +: –: 0: | 43 21 6 |
| Date tabled | 10.9.2026 |
Final vote by roll call by the committee responsible 3 paragraphs
43 · For
- No group
- Fernand Kartheiser
- EPP
- Pascal Arimont, Ioan-Rareş Bogdan, Zala Černilec Tomašič, Niels Flemming Hansen, Radan Kanev, Stefan Köhler, András Tivadar Kulja, Peter Liese, Jessica Polfjärd, Oliver Schenk, Ingeborg Ter Laak, Dimitris Tsiodras, Andrea Wechsler
- Renew
- Grégory Allione, Jeannette Baljeu, Stine Bosse, Sigrid Friis, Gerben-Jan Gerbrandy, Martin Hojsík, Christine Singer, Michal Wiezik
- S&D
- Marc Angel, Sakis Arnaoutoglou, Mohammed Chahim, Christophe Clergeau, Annalisa Corrado, Nikolas Farantouris, Heléne Fritzon, Javi López, César Luena, Pierfrancesco Maran, Elena Sancho Murillo, Eric Sargiacomo, Marta Temido, Kristian Vigenin, Tiemo Wölken
- Greens
- Ufuk Kâhya, Tilly Metz, Rasmus Nordqvist, Jutta Paulus, Majdouline Sbai, Lena Schilling
21 · Against
- ECR
- Sergio Berlato, Stefano Cavedagna, Antonella Sberna, Sander Smit, Aurelijus Veryga
- No group
- Ondřej Dostál
- EPP
- Raúl de la Hoz Quintano, Rosa Estaràs Ferragut, Elżbieta Katarzyna Łukacijewska, Massimiliano Salini, Susana Solís Pérez, Flavio Tosi, Michał Wawrykiewicz
- Patriots
- Mathilde Androuët, Marie-Luce Brasier-Clain, Ton Diepeveen, András Gyürk, Tomáš Kubín, Jana Nagyová, Margarita de la Pisa Carrión, Antonín Staněk
6 · Abstained
- ESN
- Marc Jongen, Volker Schnurrbusch
- The Left
- Martin Günther, Anja Hazekamp, Catarina Martins, Valentina Palmisano