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EU proposes retaining carbon allowances in reserve to support market stability

By Louis de Briant ( April 1, 2026, 16:33 GMT | Insight) -- EU carbon allowances in the Market Stability Reserve will be kept in the reserve, instead of being invalidated as is usually the case, according to a European Commission proposal published Wednesday. The move aims to create a buffer against price volatility in the EU's emissions trading system.EU carbon allowances held in the bloc's Market Stability Reserve should be retained rather than canceled as they are usually so they can operate as a buffer against market instability, the European Commission has proposed....

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