Today, the Commission adopted a proposal to amend the Market Stability Reserve (MSR) Decision as regards the reserve for the new emissions trading system for road transport and buildings (ETS 2). This is a key step to deliver swiftly on the package of measures announced to ensure a gradual and smooth launch of the ETS2, on top of the strong safeguards already in place, and also to help accelerate early investments. The MSR is a long-term solution to the surplus of allowances on the EU carbon market aiming at rebalancing supply and demand as well as at making the carbon market more resilient to future shocks.
This proposal responds to the concerns raised by Member States and Members of the European Parliament on future carbon price levels and volatility in the new ETS2 carbon market. It introduces targeted adjustments to the MSR that would guarantee stronger intervention if the price should go above a certain level, reinforce the capacity of the MSR to operate in the longer term, and ensure earlier and smoother action to stabilise the supply of ETS2 allowances.
Commissioner for Climate, Net-Zero and Clean Growth, Wopke Hoekstra, who outlined the set of proposals in past Environment Councils, said: ‘Today, we are delivering on the commitments we announced in October. These measures further strengthen stability and affordability within ETS2 and set us on a more predictable path toward a low-carbon future. We are setting the right conditions to keep prices in check and intervene swiftly if they go too high.’
The proposed measure can be implemented without amending the ETS Directive. Following today’s adoption, EU Member States and the European Parliament will need to agree on it before it can enter into force.
In addition, the Commission will keep working to rapidly deliver as well on the other measures on the ETS2 implementation framework. Regarding the start of the system, colegislators have introduced a postponement of ETS2 by 1 year as part of the 2040 Climate target negotiations, which now has to agreed and adopted before its application.
You can find more information on the amended market reserve rules online. Today, the European Commission has launched a new scheme – the Skills Guarantee – to support workers and businesses and tackle labour shortages in strategic and growing sectors. A flagship initiative under the Union of Skills, the Skills Guarantee will reinforce strategic sectors in line with the future European Competitiveness Fund. ?t will enable workers to transition into strategic industries, secure new jobs, and develop additional skills.
As a first step, today the Commission has launched a Skills Guarantee Pilot – with a budget of pound 14.5 million. It will focus on workers from the automotive industry and its supply chain, who are at risk of unemployment. This pilot will test how to accelerate and improve the transition of workers from these strategic sectors to jobs in companies in growing or emerging strategic sectors, providing targeted upskilling and reskilling programmes. The pilot will support workers with on-the-job training and support to learn new skills, while companies in sectors with increased demand will be able to recruit the talent they need more quickly, helping them be competitive.
Through a call for proposals launched today, this initiative will test different job-to-job transition schemes. The pilot is a first step in shaping a future fully-fledged Skills Guarantee scheme, which is set to be implemented under the EU’s future long-term budget (2028-2034).
Next Steps
The call for proposals launched today will remain open until 29 January 2026. An online training session for applicants will take place in mid-December 2025. Grant agreements under the pilot will be signed in June 2026 and projects will run for up to 24 months, until summer 2028.The results of the pilot will inform the design of the future Skills Guarantee scheme.
Member States are invited to scale up the use of Skills Guarantee as early as possible, including through the available funding for the remaining years of the current multiannual financial framework (2021-2027).
Background
The pilot will be implemented together with the European Competence Centre for Social Innovation, which helps to speed up the adoption and the scaling-up of innovative solutions in employment, education, and social inclusion. It is financed under the European Social Fund Plus (ESF+), the main EU fund to invest in people. The projects will bring together companies, public employment services, social partners, and education and training providers from at least two Member States. Interested parties in this pilot can apply for funding via a call for proposals.
For More Information
Skills Guarantee pilot – call for proposals
Questions and answers
Factsheet
Union of Skills
An ambitious budget for a stronger Europe: 2028-2034
Quote(s)
The Skills Guarantee is Europe’s promise to stand by people in times of change. It will help workers gain the skills they need to move into new jobs in growing and strategic sectors, tackling labour shortages and increasing competitiveness. The Skills Guarantee will have a direct impact and bring real benefit for workers, the labour market, companies and European competitiveness. This pilot in the automotive industry, which is undergoing a major transformation, shows how we translate our strategies, like the Union of Skills, to reality on the ground. We must turn challenges into opportunities for our people.
Roxana Mînzatu, Executive Vice-President for Social Rights and Skills, Quality Jobs and Preparedness
Commissioner Brunner in Malta for MED5 Ministerial Conference and to visit the EU Asylum Agency
Tomorrow and Saturday, Commissioner for Internal Affairs and Migration, Magnus Brunner, will be in Malta to participate in the MED5 Ministerial Conference, together with the ministers from the five Mediterranean Member States: Cyprus, Greece, Italy, Malta, and Spain. Commissioner Brunner and the ministers will focus on common migration priorities, including the implementation of the Pact on Migration and Asylum, returns, and initiatives to strengthen the EU’s comprehensive approach to migration towards third countries.
During his visit in Malta, Commissioner Brunner will meet the Maltese Prime Minister, Robert Abela, and Minister for Home Affairs, Security and Employment, Byron Camilleri, to exchange views on key issues of common interest. Commissioner Brunner will also visit the European Union Agency for Asylum (EUAA) headquarters. He will meet its Executive Director, to exchange views on the work of the Agency, as well as discuss the support to the Member States in implementing the new asylum and migration rules. Commission presents new Bioeconomy Strategy to drive green growth, competitiveness and resilience across Europe
Today, the Commission adopted a new Strategic Framework for a Competitive and Sustainable EU Bioeconomy, charting a way forward to build a clean, competitive and resilient European economy. By using renewable biological resources from land and sea and providing alternatives to critical raw materials, the EU will move forward towards a more circular and decarbonised economy and can decrease dependence on fossil imports.
The bioeconomy offers Europe a chance to strengthen its resilience, replace fossil-based materials and products, create jobs and lead the global shift to clean industries. With this new Strategy, the EU will support activities that provide sustainable practical solutions using our biological resources in sectors such as agriculture, forestry, fisheries, aquaculture, biomass processing, biomanufacturing and biotechnologies. It will harness the vast potential of these resources, scientific excellence and industrial base, and encourages innovations that benefit the climate, nature and society.
With a value of up to pound 2.7 trillion in 2023 and employing 17.1 million people (around 8% of EU jobs), the EU bioeconomy already contributes significantly to job creation and economic growth in Europe. Every job in the bioeconomy creates three indirect jobs in the EU. Examples of products are bio-based chemicals made from algae that are used to produce pharmaceuticals, personal care products and industrial applications. Bio-based plastics are increasingly used in packaging and automotive parts. Also bio-based construction productions, textile fibres and fertilisers are increasingly in demand. However, it still has a huge untapped potential.
The EU Bioeconomy Strategy aims to unlock this potential by scaling up innovation and investments, developing lead markets for bio-based materials and technologies, ensuring a sustainable supply of biomass, and harnessing global opportunities.
Making bio-based innovations a reality on the ground
To lead the bio-tech revolution, innovation and investment need to be scaled up, so that research does not remain in the labs. Scaling up bio-based innovations requires a combination of public and private investments, as well as a streamlined regulatory environment.
The Commission will work to create a coherent and simplified regulatory framework that rewards circular and sustainable business models, while safeguarding EU safety standards. Faster, clearer and simpler approvals for innovative solutions will support companies to develop and grow in Europe, especially for SMEs.
The Commission will also ensure that existing and future EU funding goes into bio-based technologies. And to stimulate private investment, the Commission proposes to convene a Bioeconomy Investment Deployment Group to create a pipeline of bankable projects, share risk more effectively, and crowd in private capital.
Developing lead markets for bio-based materials and technologies
To unlock investment and enable scale-up, the Commission identified innovative markets for bio-based materials and technologies. These include bio-based sectors, such as plastics, fibres, textiles, chemicals, fertilisers, plant protection products, construction materials, biorefineries, advanced fermentation and permanent storage of biogenic carbon, which have high potential for both economic growth and environmental benefits. The Commission will boost demand for bio-based content in products, for example by setting targets in relevant legislation.
The Strategy proposes to set up a Bio-based Europe Alliance, which will be gathering EU companies to collectively purchase bio-based solutions worth pound 10 billion by 2030.
Securing a sustainable use of biomass
While boosting today’s competitiveness we need to build tomorrow’s resilience. Europe is largely self-sufficient in biomass, but we must make sure it stays that way.
The EU Bioeconomy Strategy therefore stresses the need for sourcing biomass responsibly, ensuring that forests, soils, water, and ecosystems are managed within their ecological limits. Promoting circularity and enhancing the value of secondary biomass – such as agricultural residues, by-products, and organic waste – is key. The Commission will set up initiatives rewarding farmers and foresters who protect soils, enhance carbon sinks and support sustainable biomass use.
Harnessing global opportunities
With its strong research base and innovative industries, Europe is well positioned to become a global leader in sustainable bio-based technologies, materials, products and expertise.
With this Strategy, the EU will support European industry in accessing global markets by securing partnerships that reduce vulnerability and ensuring that Europe is not dependent on a single region or a single resource. In the current fragile geopolitical climate, resource security enhances EU’s competitiveness and resilience.
Background
The bioeconomy covers activities that use biological resources to create added value. It includes products, services, science and technologies benefitting a number of sectors ranging from agriculture and forestry to fisheries and aquaculture. Using biomass processing, biomanufacturing and biotechnologies, the bioeconomy supports food, health, energy, industry and ecosystem services.
The new Strategic Framework for a Competitive and Sustainable EU Bioeconomy builds on the 2012 Bioeconomy Strategy and the reviews carried out in 2018 and 2022, shifting the focus towards industrial deployment, market scale-up, competitiveness and resilience.
For more information
Strategic Framework for a Competitive and Sustainable EU Bioeconomy
Questions and Answers
Factsheet
Bioeconomy Strategy – Environment – European Commission
The facts about the bioeconomy – European Commission
5 things you need to know about the bioeconomy – Environment
The 2023 Council Conclusions
The European Parliament’s resolution on the future of the EU biotechnology and biomanufacturing sector
The Committee of the Regions opinion on the bioeconomy
European Economic and Social Committee opinion on the bioeconomy
Knowledge Centre for Bioeconomy
Quote(s)
The bioeconomy holds the answer to combining prosperity with environmental protection. It restores ecosystems while leading on biotechnologies. It is our responsibility to citizens to build a competitive and thriving economy. The future is not fossil. The future is living, circular, and regenerative. The future is bioeconomy.
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition
The bioeconomy offers huge potential to scale up – from the products we use every day, to the homes we live in, to large industrial applications. This is a growth strategy that will increase our resilience and competitiveness, and at the same time ensure that nature and healthy ecosystems remain the backbone of our economy. It will create local jobs, replace fossil resources, and protect the nature we all rely on. Our vision is clear: a future where Europe runs on nature, innovation and circular solutions rooted in a competitive and sustainable bioeconomy.