The European Commission has unveiled its first concrete measure to strengthen the European Union Emissions Trading System (EU ETS), following President von der Leyen’s announcement at the March European Council. 

 

The move targets the ETS’s Market Stability Reserve (MSR), a key tool for ensuring a stable carbon market.

 

The Commission proposed an amendment to the Market Stability Reserve Decision that will halt the invalidation of allowances above 400 million, keeping them as a buffer to smooth market volatility. The MSR currently absorbs excess allowances when supply is high and injects them during scarcity, stabilizing prices and maintaining market predictability.

 

Commissioner for Climate, Net Zero and Clean Growth, Wopke Hoekstra, said: “Today, we are delivering on the one of the commitments made by our leaders. This marks an important first step in modernising our carbon market. By strengthening the Market Stability Reserve, we enhance EU ETS' resilience to volatility and ensure that it continues to drive decarbonisation, support competitiveness, and foster clean investment.”

 

The EU ETS has already slashed fossil fuel use, reduced reliance on imports, and driven investments in renewables and low-carbon technologies—strengthening the EU’s energy independence. But recent challenges have exposed the need for a more agile system. The Commission is working closely with Member States to ensure the ETS remains robust, predictable, and fit for purpose.

 

In a separate initiative, the European Commission has awarded €20 million to 41 Ukrainian start-ups and SMEs through the European Innovation Council (EIC), helping them turn breakthrough ideas into market-ready solutions. Each company will receive €300,000–€500,000, with the possibility of faster access to larger EIC Accelerator grants and equity investments.

 

The funding comes as Ukrainian innovators face severe obstacles, from capital shortages to disruptions caused by Russia's war of aggression. It targets sectors including artificial intelligence, robotics, biotechnology, and cybersecurity.

 

 

Farsight Vision – A GPS- and radio-free system detecting unauthorized drones near airports and sensitive sites, improving airspace security.

 

Anotherland – An AI platform converting architectural plans into photorealistic digital twins, helping reconstruction projects and real estate developers visualize spaces faster.

 

Innovinnprom – Uses AI to predict grain spoilage in silos, giving farmers 1–3 days’ lead time to prevent losses—a vital tool for Ukraine’s agricultural sector.

 

Commissioner for Startups, Research and Innovation, Ekaterina Zaharieva, said: “Supporting Ukraine's most promising deep tech innovators is more than an investment in innovation, it is an investment in resilience and future growth. This funding will help integrate the Ukrainian start-ups into the European innovation ecosystem, strengthening Ukraine's long-term economic alignment with the EU.”