The European Commission announced the achievement of a preliminary political agreement between the European Parliament and the EU Council on a targeted amendment designed to strengthen the Market Stability Reserve (Market Stability Reserve, MSR) — a key mechanism of the EU Emissions Trading System (EU ETS). The corresponding statement was published by the European Commission in Brussels on October 21, 2026. The MSR was created to regulate the balance of supply and demand for carbon emission quotas, preventing sharp price fluctuations and excessive accumulation of quotas on the market. The mechanism automatically removes excess quotas from circulation or returns them to the market depending on the current volume of quotas in circulation, thereby maintaining stability in carbon prices. According to the European Commission, the reached agreement provides for targeted changes in how the reserve operates, designed to increase its effectiveness and ensure long-term sustainability of the entire emissions trading system. The European Commission characterized the agreement as an important step toward strengthening the predictability of the carbon market, which is particularly significant for companies investing in low-carbon technologies and planning long-term decarbonization strategies. The agreement reached by the European Parliament and EU Council is currently preliminary in nature and is subject to formal approval by both institutions before the amendment enters into force. The EU ETS remains one of the EU's main climate policy instruments, covering the energy sector, industry, and aviation, and plays a key role in achieving the EU's greenhouse gas emission reduction targets.