News 2026

The European Commission has proposed a targeted revision of the EU Emissions Trading System (EU ETS) to enhance its stability and the predictability of costs. The proposal focuses on the Market Stability Reserve (MSR), which is designed to adjust the supply of carbon allowances under certain circumstances.

According to the proposal, the automatic invalidation of allowances above the current threshold would be discontinued, and instead retained as a buffer. This adjustment aims to strengthen the system’s ability to respond to market imbalances and potential future supply constraints.

For FIEC, the EU ETS remains a central, market-based tool to drive industrial decarbonisation. Predictability and consistency are essential to steer investment in low-carbon technologies and to support the market uptake of alternative construction materials.

As the proposal enters the legislative co-decision procedure involving the European Parliament and Member States in the Council, the European construction industry stands ready to continue working with lawmakers to achieve the continent’s decarbonisation goal.

Access Press Release of the European Commission here.

Access FIEC Position Paper on Industrial Decarbonisation of July 2025 here.