Market stability reserve for the buildings, road transport and additional sectors

Amendments tabled for the plenary sitting on this text, in their own numbering series. This is a different set from the committee amendments tracked elsewhere on AmendEU, and is not counted in any of the site’s amendment totals.

1. Amendment 1Proposal for a decision · Recital 1 a (new)
   Amendment

   (1a) The conclusions of the European Council of 12 December 2019 endorse the objective of achieving a climate-neutral Union by 2050, in line with the objectives of the Paris Agreement.

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2. Amendment 2Proposal for a decision · Recital 3
   Current text

   (3) The analysis carried out of the expected functioning of the reserve, taking into account recent information, indicates that targeted amendments to some parameters would contribute to improving market predictability and to the stability of price movements in the early years of the new system.

   Amendment

   (3) The analysis carried out of the expected functioning of the reserve, taking into account recent information, indicates that targeted amendments to some parameters would contribute to improving market predictability and to the stability of price movements in the early years of the new system. In order for those amendments not to hinder the Union’s decarbonisation efforts, further action by the Member States is necessary. According to the European Central Bank, green investment in the Union remains below the levels required to meet the 2030 decarbonisation target. Therefore, Member States need to remain vigilant against the risk of a green funding gap.

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3. Amendment 3Proposal for a decision · Recital 3 a (new)
   Amendment

   (3a) The implementation of the emissions trading system for the buildings, road transport and additional sectors needs to be accompanied by complementary decarbonisation measures which are the most effective tool for helping households reduce fossil fuel dependency and therefore mitigating the impact of the ETS2 on consumers, given that fuel demand in buildings and transport remains largely inelastic in the short term. Member States are obliged to use the revenues from the auction of allowances for the purposes pursuant to Article 30d(6) of Directive 2003/87/EC, giving priority to activities that can contribute to addressing the social aspects of emissions trading under ETS2. Therefore, it w…

   Excerpt — full text in the official PDF.
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4. Amendment 4Proposal for a decision · Recital 4
   Current text

   (4) In order to increase long-term market predictability, the allowances placed in the reserve for the buildings, road transport and additional sectors that have not been released should remain valid beyond 31 December 2030.

   Amendment

   (4) In order to increase long-term market predictability, the allowances placed in the reserve for the buildings, road transport and additional sectors that have not been released should remain valid until 31 December 2033 and partially until 31 December 2035. Within four years of the start of the operation of ETS2, the Commission should conduct an impact assessment, including a distributional impact assessment, and an evaluation of the environmental, social and economic impact of the remaining allowances in the reserve.

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5. Amendment 5Proposal for a decision · Recital 6
   Current text

   (6) In order to further improve its reactivity to unwarranted price fluctuations and increase market predictability, the mechanism to enhance price stability in the first three years of the emissions trading system for buildings, road transport and additional sectors should be strengthened in a careful manner. This could involve releasing a higher volume of allowances in the market. If the measure is applied twice during the same 12 months period, the additional release should occur twice.

   Amendment

   (6) In order to further improve its reactivity to unwarranted price fluctuations and increase market predictability, the mechanism to enhance price stability in the first three years of the emissions trading system for buildings, road transport and additional sectors should be strengthened in a careful manner. This could involve releasing a higher volume of allowances in the market without delay. If the measure is applied twice during the same 12 months period, the additional release should occur twice.

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6. Amendment 6Proposal for a decision · Recital 6 a (new)
   Amendment

   (6a) Excessive allowance price levels within the emissions trading system for the buildings, road transport and additional sectors could still have disproportionate impacts on vulnerable households, while excessive price fluctuations might not be limited to an occurrence twice a year. In the context of the review of Directive 2003/87/EC of the European Parliament and of the Council, it is essential that further social safeguarding measures be considered, and it may be appropriate for stronger price curtailment instruments to be considered by the Commission to guarantee price stability in the long term. In this regard, the Commission could consider a list of options such as strengthening and…

   Excerpt — full text in the official PDF.
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7. Amendment 7Proposal for a decision · Recital 6 b (new)
   Amendment

   (6b) Following the revision of the market stability reserve provided for in this amending Decision, it would be appropriate for the Commission to conduct an impact assessment of the emissions trading system for the buildings, road transport and additional sectors to assess its social impact and its impact on meeting the climate goals, as well as a distributional assessment of the number of vulnerable households for which support has been made available from the Social Climate Fund and the EIB Frontloading Facility by that date, including, as feasible, a breakdown by type of geographical area, by income distribution and by gender which needs to also consider additional measures to ensure both…

   Excerpt — full text in the official PDF.
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8. Amendment 8Proposal for a decision · Article 1 – paragraph 1 – point 1 · Decision (EU) 2015/1814 · Article 1a – paragraph 3
   Current text

   (1) In paragraph 3, the second sentence is deleted;

   Amendment

   (1) In paragraph 3, the second sentence is replaced by the following: ‘From 1 January 2034, 50% of the allowances referred to in that subparagraph that have not been released from the reserve shall no longer be valid. From 1 January 2036, the remaining allowances referred to in that subparagraph that have not been released from the reserve shall no longer be valid.’;

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9. Amendment 9Proposal for a decision · Article 1 – paragraph 1 – point 4 a (new) · Decision (EU) 2015/1814 · Article 1a – paragraph 7
   Current text

   The volumes to be released from the reserve shall be evenly distributed over a period of three months, starting no later than two months after the date on which the conditions were met according to the publication in that regard in the Official Journal of the European Union pursuant to Article 30h(8) of Directive 2003/87/EC.

   Amendment

   (4a) In paragraph 7, the second sentence is replaced by the following: ‘The volumes to be released from the reserve shall be evenly distributed over a period of three months, starting no later than 30 days after the date on which the conditions were met according to the publication in that regard in the Official Journal of the European Union pursuant to Article 30h(8) of Directive 2003/87/EC.’.

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10. Amendment 10Proposal for a decision · Article 1 a (new) · Decision (EU) 2015/1814 · Article 3 – paragraph 1 a (new)
    Amendment

    Article 1a In Article 3 of Decision (EU) 2015/1814, the following paragraph is added: ‘Within four years of the start of the operation of emissions trading for buildings, road transport and additional sectors set out in Chapter IVa of Directive 2003/87/EC, the Commission shall carry out an impact assessment, including a distributional impact assessment, and an evaluation of the environmental, social and economic impact of the remaining allowances in the reserve under Article 1a of this Decision, and determine the appropriateness of partially or entirely invalidating those allowances. That evaluation shall, where appropriate, be accompanied by a legislative proposal.’.

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11. Amendment 11The LeftProposal for a decision

    Replaces or inserts a longer passage — full text in the official document.

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12. Amendment 12ESNProposal for a decision · Recital 3 a (new)
    Amendment

    (3a) Prior to the comprehensive review of the Union Emissions Trading Framework, including the existing Union Emissions Trading System (ETS1), ETS2 and the Market Stability Reserve, scheduled for July 2026, no anticipated changes to the Market Stability Reserve should be adopted that could pre-empt the outcome of that overall review, jeopardise legal consistency or create additional cost risks for citizens, businesses and Member States under ETS2.

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13. Amendment 13ESNProposal for a decision · Recital 3 b (new)
    Amendment

    (3b) Since ETS2 for buildings and road transport may entail significant additional costs for households, businesses and consumers, anticipated changes to the market stability reserve for ETS2 should be rejected until the comprehensive review of the Union emissions trading framework scheduled for July 2026. This is all the more so since the Social Climate Fund is time-limited, covers funding only for the period from 2026 to 2032, requires national co-financing of at least 25 % by Member Statesand is contingent upon the timely submission of national social climate plans, so there is no certainty that effective social compensation can be ensured in a timely manner. At the same time, recent Euro…

    Excerpt — full text in the official PDF.
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14. Amendment 14ESNProposal for a decision · Recital 4 a (new)
    Amendment

    (4a) Several Member States have already introduced national instruments for pricing CO₂ emissions or other regulatory measures that address emissions from buildings and road transport. Against this background, anticipated changes to the market stability reserve for ETS2 should not lead to a Union-wide pre-determination that undermines existing national measures or disproportionately restricts the room for manoeuvre of Member States in setting policy. In accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union, the functioning of the market stability reserve for ETS2 should only be reassessed in the light of the comprehensive review of the Union em…

    Excerpt — full text in the official PDF.
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15. Amendment 15ESNProposal for a decision · Recital 4 b (new)
    Amendment

    (4b) Since the market stability reserve for ETS2 has a direct impact on the availability of allowances and therefore on the functioning of the system, changes to its parameters should not be decided on the basis of mere expectations but only after a comprehensive assessment of actual market and price developments.

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16. Amendment 16ESNProposal for a decision · Article 2
    Current text

    This Decision shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

    Amendment

    This Decision shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union only if the Commission has previously confirmed, in the context of the comprehensive review of the Union Emissions Trading Framework, including the existing Union Emissions Trading System (ETS1), ETS2 and the Market Stability Reserve, scheduled for July 2026, that the amendments provided for in this Decision are consistent with the results of that review. In the absence of such confirmation, this Decision shall not enter into force.

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17. Amendment 17PfEProposal for a decision · Recital 6 a (new)
    Amendment

    (6 a) Chapter IVa of Directive 2003/87/EC introduced a separate emissions trading system (ETS2) for fuels used in buildings, road transport and additional sectors. This system risks increasing the cost of living across the Union, especially for vulnerable groups. At a time when many Union citizens are already facing persistent inflation, high energy prices and economic uncertainty, the introduction of ETS2 risks further exacerbating social inequalities. Therefore, Chapter IVa of Directive 2003/87/EC should be deleted. Consequently, Article 1a of Decision (EU) 2015/1814 should also be deleted, as it would be no longer necessary in the absence of ETS2.

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18. Amendment 18PfEProposal for a decision · Recital 6 b (new)
    Amendment

    (6 b) In order to mitigate the disproportionate impact of ETS2 and ensure an effective intervention, the excessive price increase mechanism should be prolonged over 2030 and the price cap should be reduced to EUR 25.

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19. Amendment 19PfEProposal for a decision · Recital 6 c (new)
    Amendment

    (6 c) Member States should be allowed to exempt entities located in their territory from the obligation to apply ETS2.

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20. Amendment 20PfEProposal for a decision · Article 1 a (new)
    Amendment

    Article1a Repeal of the Emissions Trading System for Buildings, Road Transport and additional Sectors Chapter IVa of Directive (EU) 2023/959 is deleted. Article 1a of Decision (EU) 2015/1814 is deleted.

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21. Amendment 21PfEProposal for a decision · Article 1 b (new)
    Amendment

    Article1b Directive 2003/87/EC is amended as follows: (1) in Article 30e, paragraph 3 is replaced by the following: ‘By way of derogation from paragraphs 1 and 2 of this Article, a competent authority of a Member State may exempt the entity located in its territory from the obligation to surrender allowances under paragraph 2 of this Article for a given reference year.’;

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22. Amendment 22PfEProposal for a decision · Article 1 c (new)
    Amendment

    Article1c Directive 2003/87/EC is amended as follows: (1) in Article 30h, paragraph 2 is amended as follows: ‘Where the average price of allowances referred to in paragraph 1 of this Article exceeds a price of EUR 25 for a period of two consecutive months, 20 million allowances covered by this Chapter shall be released from the market stability reserve in accordance with Article 1a(7) of Decision (EU) 2015/1814. Indexation based on the European index of consumer prices for 2020 shall apply.’;

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23. Amendment 23ECRProposal for a decision · Recital 6 a (new)
    Amendment

    (6 a) As part of the upcoming review of Directive (EU) 2003/87/EC, the Commission should thoroughly assess the introduction of Chapter IVa establishing emissions trading system for buildings, road transport and additional sectors. Particular attention should be paid to the social and financial consequences of the extension of the EU ETS for households, especially low-income and vulnerable households, as well as for transport users. The evaluation should examine, inter alia, the possibility of deleting or significantly postponing the application of Chapter IVa; the effectiveness of the extension of the EU ETS to new sectors and assessment of the proportionality of the measure given its negati…

    Excerpt — full text in the official PDF.
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24. Amendment 24ECRProposal for a decision · Recital 6 b (new)
    Amendment

    (6 b) European households and industries are already subject to significant regulatory and financial obligations arising from the Union’s climate legislation. Measures adopted under Directive 2003/87/EC establishing the EU Emissions Trading System result in increased energy and production costs, while requirements stemming from Directive (EU) 2024/1275 on the energy performance of buildings result in substantial renovation costs for households. In this context, additional regulatory burdens, such as the introduction of the extension of the EU ETS to buildings and road transport could further increase the cost of energy, heating and transport, in particular for low-income and vulnerable house…

    Excerpt — full text in the official PDF.
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25. Amendment 25ECRProposal for a decision · Article 1 – paragraph 1 – point 4
    Current text

    (4) In paragraph 7, the following sentence is inserted between the first and second sentence: ‘In the event that allowances are released from the reserve in accordance with Article 30h(2) of Directive 2003/87/EC, 20 million more allowances shall be added to the amount to be released from the reserve.’.

    Amendment

    (4) In paragraph 7, the following sentence is inserted between the first and second sentence: ‘In the event that allowances are released from the reserve in accordance with Article 30h(2) of Directive 2003/87/EC, at least 20 million more allowances shall be added to the amount to be released from the reserve in order to effectively prevent excessive price increase.’.

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26. Amendment 26ECRProposal for a decision · Article 1 a (new)
    Amendment

    Article1a Deletion of the entry into force of the emissions trading system for buildings, road transport and additional sectors Chapter IVa of Directive 2003/87 is deleted.

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27. Amendment 27ECRProposal for a decision · Article 1 b (new)
    Amendment

    Article 1b Postponement of the operation of emissions trading for buildings, road transport and additional sectors The operation of emissions trading for buildings, road transport and additional sectors set out in Chapter IVa of Directive 2003/87 is postponed until 2030.

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