09/10/2026 (Agence Europe) – On Friday 9 October, the Council of the European Union announced it had endorsed an agreement reached with the European Parliament on the market stability reserve (MSR) for the CO2 emissions trading system for the buildings and road transport sectors (EU ETS2, or ‘ETS2’) (see EUROPE 13886/7). This carbon pricing system will not be implemented until 2028, but advance auctions are set to begin as early as January 2027 (see EUROPE 13950/32). The amendments aim to extend the lifetime of the MSR beyond 2030; double the number of allowances to be released from 20 million to 40 million when the cost of carbon exceeds €45 per tonne of CO2 equivalent; and allow for a swift response if the number of allowances in circulation falls below 260 million. (ND)