Decision (EU) 2015/1814 on the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme, last amended by Directive (EU) 2023/959

This decision determines that a Market stability reserve shall be operational from 2019 onwards. It stipulates the quantity of 900 million allowances to be put in the reserve market. Under the rules governing the Market Stability Reserve (MSR) of the EU Emissions Trading System (EU ETS), the European Commission is required to publish the total number of allowances in circulation (TNAC) each year by 1 June of the following year. This figure reflects the cumulative balance of allowances since 1 January 2008 and serves as a key input for determining whether allowances should be added to or withdrawn from the MSR in order to maintain market stability. The TNAC is calculated by summing the total number of allowances issued for installations and shipping companies since 2008, excluding those that have already been placed in the reserve. This total also includes allowances issued under Article 13(2) of Directive 2003/87/EC (as it stood on 18 March 2018), and any entitlements used for international credits under the EU ETS. From this total, the cumulative verified emissions from installations and shipping companies since 2008 are subtracted.As of 2024, the scope of this calculation has expanded to include the aviation sector. Specifically, the TNAC now also accounts for the cumulative number of allowances issued in respect of aviation, as well as the cumulative verified aviation emissions from 1 January 2024 onward.Moreover, starting in 2027, the EU Emissions Trading System (EU ETS) will expand to cover additional sectors (buildings, road transport), under Chapter IVa of Directive 2003/87/EC. To ensure market stability in these new sectors, the existing Market Stability Reserve (MSR) will be adapted to include them, but with separate rules and a dedicated reserve structure. A separate and independent section of the MSR will be created specifically for these new sectors and the operation will start in 2028.This decision also amended the Directive 2003/87/EC (EU-ETS) to bring such MSR rules to the trading scheme.