The European Committee of the Regions has formally renounced its right to be consulted on a proposal to amend Decision (EU) 2015/1814, which would cease the invalidation of allowances in the EU Emissions Trading System's market stability reserve. The renunciation letter, sent to the Council of the European Union on 23 June 2026, means the committee will not submit an opinion on the proposal, effectively waiving its consultation role in the legislative process.
The proposal, part of interinstitutional file 2026/0085 (COD), aims to modify the market stability reserve by ending the automatic invalidation of surplus allowances. This change would affect the supply of allowances in the EU carbon market, potentially lowering carbon prices and reducing incentives for emissions reductions. The Committee of the Regions, which represents local and regional authorities, had been entitled to provide input on the proposal under the EU's ordinary legislative procedure. By renouncing this right, the committee speeds up the legislative process but forfeits the opportunity to represent regional interests, such as concerns about the impact on local industries or climate goals.
EU producers in energy-intensive sectors may benefit from lower carbon costs if the amendment reduces allowance prices, but environmental NGOs and proponents of ambitious climate action may view the change as weakening the EU's carbon market. The European Parliament and Council will now proceed without the committee's input, potentially accelerating adoption but reducing regional perspectives in the final legislation. The next step is for the Council to finalize its position and enter negotiations with the Parliament under the ordinary legislative procedure.