2025/0380(COD)

Official summary (Legislative Observatory, Decision by Parliament, 1st reading): The European Parliament adopted by 467 votes to 158, with 41 abstentions, a legislative resolution on the proposal for a decision of the European Parliament and of the Council amending Decision (EU) 2015/1814 on the proposal for a decision of the European Parliament and of the Council amending Decision (EU) 2015/1814 as regards the market stability reserve for the buildings, road transport and additional sectors.

As a reminder, the objective of the proposed decision is to strengthen the market stability reserve for the emissions trading system for buildings, road transport and other sectors, in particular through improved responsiveness of this system and increased market stability.

The European Parliament adopted its position at first reading by amending the Commission's proposal as follows:

Complementary measures

The amended text underlined that achieving the EU’s climate targets will require substantial public and private investment in the climate and energy transition, particularly in buildings and road transport.

Parliament called for the emissions trading system (ETS2) to be accompanied by complementary national measures in order to make it easier for households and transport users to respond effectively by transitioning to clean heating and road transport alternatives.

Member States should spend the auction revenues from emissions trading for buildings, road transport and additional sectors on the climate and energy-related purposes specified for the existing emissions trading system, giving priority to activities that can contribute to addressing social aspects of ETS2, or for measures that specifically address related concerns for those sectors, including for the national contribution to the total estimated costs of the Social Climate Plan.

Review

During the review of the new EU ETS for buildings and road transport, the Commission should assess the price stability mechanisms and the market stability reserve, in order to guarantee both environmental integrity and social fairness.

The review is in particular to consider the functioning of the excessive price measure aimed at increasing certainty for citizens that the carbon price in the initial years of operation of that new emissions trading system does not go above a certain level, and whether that measure should be continued after 2029.