The Market Stability Reserve's intake/release thresholds (833m/947m allowances in circulation for intake; 300m/400m for release) tighten by 4% each year from 2029, automatically reducing the volume of allowances Member States can auction as more allowances are diverted into or held in the reserve.

Member States (auctioning allowances) / European Commission (administering the MSR) must comply, and this is not law yet.

Why it matters

This is a Commission proposal: it is not law yet, and it can change before it is.

It is Art. 2(2), amending Art. 1(5) of Decision (EU) 2015/1814, in the EU ETS revision. as of 2026-08-14
The act gives its timing as: from 2029. as of 2026-08-14
It names no industry: it applies across the economy rather than to one of them. as of 2026-08-14
Compliance is checked by none, annual. as of 2026-08-14

Addressee Member States (auctioning allowances) / European Commission (administering the MSR)Act COM(2026) 616 final, 2026/0212 (COD)Article Art. 2(2), amending Art. 1(5) of Decision (EU) 2015/1814Class Governments

The rule

New — no predecessor

Trigger

total number of allowances in circulation each year, benchmarked against the annually-declining thresholds

Obligation

The Market Stability Reserve's intake/release thresholds (833m/947m allowances in circulation for intake; 300m/400m for release) tighten by 4% each year from 2029, automatically reducing the volume of allowances Member States can auction as more allowances are diverted into or held in the reserve.

Who is affected

Addressee

Member States (auctioning allowances) / European Commission (administering the MSR)

Class

Governments

Sectors

No sector named — applies by size or activity

Applies

from 2029

Burden drivers

D5 — 1 of 7 marks fire on this provision.

Source text

Verbatim

From 2029, the thresholds of 833 and 947 million under this paragraph shall decrease annually by 4%, rounded to the nearest million, as specified in the Annex

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