EU negotiators have provisionally agreed to raise the number of allowances the emissions trading system's Market Stability Reserve can hold before cancelling the surplus from 400 million to 700 million, splitting the difference between the Commission's proposal to end cancellation & the Council's call for 800 million. The larger buffer is intended to dampen price volatility as the carbon cap tightens & free allocation to industry is phased out, giving steelmakers partial insurance against a spike in the early 2030s without changing the cap or the 2040 target. The deal awaits formal adoption & will be followed by a wider ETS review .