Commission welcomes agreement on key safeguards for the new emissions trading system for buildings and road transport
The European Parliament and Council have today reached a provisional agreement to strengthen the Market Stability Reserve (MSR) for the new emissions trading system covering buildings, road transport and additional sectors (ETS2), helping to ensure a smooth and predictable start when the system launches in 2028. It supports the implementation of the EU’s 2040 climate objectives while enhancing resilience to volatility in fossil fuel imports.
Following the Commission’s proposal, this agreement strengthens the ETS2 safeguards by enabling stronger intervention to support market price stability and reinforcing the reserve’s capacity to operate in the longer term, while preserving the environmental integrity of the system. It sends a clear signal that the EU 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, said: “Climate action must not only be effective, but also 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.”
The agreement on the targeted MSR changes completes a set of measures announced by the Commissioner at the October 2025 Environment Council to secure ETS2 market stability and accelerate early investments. Together with the Social Climate Fund, these measures will contribute to a fair and orderly transition towards climate neutrality. Now, this provisional agreement needs to be formally adopted by the European Parliament and the Council of the EU.
