On Tuesday, the European Parliament voted on two separate proposals aimed at supporting market stability in the European Union Emissions Trading System (ETS), covering ETS1 and ETS2, the Parliament said in a press release. The vote follows work in the Committee on the Environment, Public Health and Food Safety.
What Parliament is doing
Members of the European Parliament cast votes on amendments to the Market Stability Reserve (MSR) that apply to both ETS1 and ETS2. The proposals were considered in the Environment, Public Health and Food Safety Committee prior to the plenary votes. The Parliament described the measures as intended to support market stability across the two trading systems.
Why it matters
The Market Stability Reserve is a mechanism designed to address the supply of emission allowances and stabilise the carbon market. Measures affecting the MSR can influence how many allowances are removed from or returned to the market, with consequences for allowance prices and the functioning of ETS1 and ETS2. Parliament framed the votes as supporting market stability within the EU emissions trading frameworks.
What happens next
The press release does not provide details of the vote counts, the exact content of the adopted amendments, or the subsequent procedural steps. It also does not specify whether the adopted proposals require trilogue negotiations with the Council or further actions at national level. Further information on implementation, timeline or legal effects was not included in the Parliament’s account.
Source: European Parliament press release
