IN KOTOR: The European Parliament has reached a provisional agreement on a key legislative proposal to support implementing 2040 climate objectives while enhancing resilience to volatility in fossil fuel imports.
The agreement strengthens the Market Stability Reserve (MSR) for the Emissions Trading System 2 (ETS2) covering buildings, road transport, and additional sectors, helping to ensure a smooth and predictable start when the system launches in 2028.
The move signals that the European Union is committed to a predictable and reliable carbon market, providing greater certainty for citizens, businesses, and those investing in the transition.
Commissioner for Climate, Net Zero, and Clean Growth Wopke Hoekstra says climate actions must be effective, fair, and predictable.
“Today’s agreement strengthens the safeguards around the new emissions trading system for buildings and road transport, further enhancing stability and affordability for citizens and businesses, while setting us on a more predictable path toward a low-carbon future,” Hoekstra says.
The agreement on the targeted MSR changes completes a set of measures announced by Hoekstra at the October 2025 Environment Council to secure ETS2 market stability and accelerate early investments.
The new ETS2 system, which will become operational by 2028, complements other policies and measures to incentivise and support emissions reductions from the buildings, road transport, and additional sectors in a technology-neutral and competitiveness-friendly manner.
Write to Aaliyah Rogan at Mining.com.au
Images: European Commission
