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Parliament and Council agree 700m-allowance buffer in EU carbon market

· Climate / emissions trading

Countries
🇪🇺 EU-27
Event
On 20 Oct 2026 the European Parliament and the Council reach a provisional agreement on a targeted amendment of the EU ETS Market Stability Reserve

The reserve may in future hold up to 700m allowances as a buffer instead of invalidating everything above 400m; formal adoption by Parliament and Council is pending

The agreement builds on the Commission's April 2026 proposal and follows the European Council conclusions of 16 Oct 2026; it is meant to make the carbon market more resilient to sharp price swings. After formal adoption the amendment enters into force on publication in the Official Journal (European Commission, 20 Oct 2026).

Source: ec.europa.eu ↗ · Archived copy ↗

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