This Week in Environment — Brussels (#12, 2026)
Commission proposes EU ETS Market Stability Reserve reform; new guidance on packaging waste and wild birds; €6bn Italian hydrogen scheme approved; Council Decision on migratory species; multiannual pesticide residue controls adopted.
March 29, 2026 to April 04, 2026
Commission proposes EU ETS Market Stability Reserve reform; new guidance on packaging waste and wild birds; €6bn Italian hydrogen scheme approved; Council Decision on migratory species; multiannual pesticide residue controls adopted.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
• 📚 What We're Reading This Week
European Commission
Commission proposes amendment to the EU ETS Market Stability Reserve
On 31 March 2026, the European Commission announced a proposal to amend the Market Stability Reserve (MSR) mechanism of the EU Emissions Trading System (EU ETS). The proposed measure would end the automatic invalidation of allowances held in the MSR above 400 million, allowing excess allowances to be retained to enhance market stability and predictability. This proposal follows President Ursula von der Leyen’s earlier announcement at the March European Council and is presented as an initial step in modernising the carbon market. The MSR has operated since 2019 as a rules-based tool to adjust supply of allowances, contributing to the restoration of confidence in the carbon market following earlier surpluses. The proposal will now proceed to the European Parliament and Council under the ordinary legislative procedure. A comprehensive review of the EU ETS is scheduled for July 2026.
Commission issues guidance for implementation of Packaging and Packaging Waste Regulation
On 29 March 2026, the Commission published guidelines to support uniform application of the Packaging and Packaging Waste Regulation (PPWR), which entered into force on 11 February 2025. The guidance clarifies key provisions, including restrictions on single-use packaging, enforcement of PFAS restrictions in food contact materials, and the application of extended producer responsibility and deposit-return systems. The document also addresses the roles of manufacturers and producers and defines what constitutes packaging under the Regulation. Accompanying FAQs address stakeholder questions raised since adoption. The Commission is preparing further delegated and implementing acts, including for labelling, recyclability, and harmonised reporting formats. The guidance, not legally binding, will be made available in all EU languages before formal adoption.
Commission provides new guidance on implementing the Birds Directive
On 30 March 2026, the Commission published guidelines for pragmatic and proportionate implementation of the Birds Directive (Directive 2009/147/EC), focusing on Articles 5 and 9. The document aims to clarify existing rules for protecting wild birds and their habitats, while reducing administrative burden for stakeholders such as farmers, foresters, and fishers. The guidance sets out standardised measures for recurring activities and addresses use of derogations, such as flyway derogations for migratory species. Two annexes address management of Barnacle Goose and Great Cormorant populations, which have increased in recent years and created conflicts with economic activities. The Commission states that the guidance does not amend or add to the Directive and is not legally binding. The document will undergo translation before formal adoption.
Commission opens State aid assessment of French nuclear programme
On 30 March 2026, the Commission launched an in-depth State aid investigation into France's plan to support construction and operation of six new nuclear reactors, with an estimated capacity of 9,990 MW and a total cost of €72.8 billion. France plans to offer a subsidised loan, a 40-year two-way contract for difference, and a risk-sharing mechanism for Électricité de France S.A. (EDF). The investigation will assess the proportionality and appropriateness of the aid, its impact on competition, and compliance with Article 19d(2) of the Electricity Regulation (Regulation 2024/1747). The non-confidential version of the decision will be made available under case number SA.119469.
Commission approves €6 billion Italian State aid scheme for renewable hydrogen
On 29 March 2026, the Commission approved Italy’s €6 billion State aid scheme to support production of 200,000 tons of renewable hydrogen per year for the industrial and transport sectors. The scheme will use two-way contracts for difference, with strike prices set via competitive bidding. The measure was assessed under Article 107(3)(c) TFEU and the 2022 Guidelines on State aid for climate, environmental protection, and energy (CEEAG). The Commission found the scheme necessary, proportionate, and with an incentive effect. The decision will be published under case number SA.118992.
Commission allocates €21.5 million in emergency support to farmers in Bulgaria, Estonia and Hungary
On 29 March 2026, the Commission announced the allocation of €21.5 million from the agricultural reserve to support farmers in Bulgaria, Estonia, and Hungary affected by adverse weather events in 2025. The aid may be complemented by up to 200% in national funds and must be distributed by national authorities by 30 September 2026. Member States are required to notify the Commission regarding implementation details, including selection criteria and measures to avoid competition distortions. The support draws on the CAP’s annual agricultural reserve, established to address exceptional events.
Commission issues Q&A on EU ETS Market Stability Reserve
On 31 March 2026, the Commission published a Q&A document outlining proposed changes to the EU ETS Market Stability Reserve (MSR). The main proposal is to stop the automatic invalidation of allowances in the MSR above 400 million, strengthening the buffer function of the MSR and improving flexibility and stability in the carbon market. The Commission indicates that the measure will be included in the comprehensive review of the EU ETS scheduled for July 2026. The Q&A states that the proposal will not have an immediate impact on carbon prices but is intended to provide greater predictability for long-term investment.
EU Legislation (Official Journal)
Commission Regulation (EU) 2026/752 amends Annex IV to Regulation (EC) No 396/2005 on maximum residue levels
Commission Regulation (EU) 2026/752 of 31 March 2026 adds Allium fistulosum (processed), lysate of Willaertia magna, magnesium hydroxide E528, Onobrychis viciifolia (sainfoin) dried pellets, and Vitis vinifera L. seed extract to Annex IV of Regulation (EC) No 396/2005. This means no specific maximum residue levels (MRLs) are required for these substances, as their use is not expected to pose a consumer risk. The Regulation enters into force 20 days after publication.
Commission Implementing Regulation (EU) 2026/748 establishes multiannual pesticide residue control programme for 2027–2029
Commission Implementing Regulation (EU) 2026/748 of 31 March 2026 sets out a coordinated multiannual control programme for 2027–2029 to monitor compliance with maximum residue levels (MRLs) of pesticides in food and animal feed. The Regulation details sampling obligations, reporting formats, and harmonised methods for Member States. It repeals Implementing Regulation (EU) 2025/854 for samples taken from 2027 onward.
Council Decision (EU) 2026/733: EU position for the fifteenth meeting of the CMS Conference of the Parties
Council Decision (EU) 2026/733 of 19 March 2026 sets the EU position at the fifteenth meeting of the Conference of the Parties to the Convention on the Conservation of Migratory Species of Wild Animals (CMS). The Decision specifies support for various proposals to amend the CMS Appendices, such as inclusion of certain animal populations in Appendix I and II, and opposes removal of Cervus elaphus yarkandensis from Appendix I.
Commission Implementing Decision (EU) 2026/753: Recognition of Latvia's GHG data for rapeseed cultivation
Commission Implementing Decision (EU) 2026/753 of 31 March 2026 recognises the report submitted by Latvia under Article 31(2) of Directive (EU) 2018/2001, confirming the accuracy of greenhouse gas emissions data for rapeseed cultivation in Latvian NUTS 2 regions. The Decision is valid until 21 April 2031.
Council Regulation (EU) 2026/786 amends Regulation (EU) 2026/249 on fishing opportunities
Council Regulation (EU) 2026/786 of 30 March 2026 amends Regulation (EU) 2026/249, updating fishing opportunities for 2026–2028 in Union and certain non-Union waters. The amendments reflect new scientific advice, bilateral agreements, and changes to quota allocations for several fish stocks, including mackerel, cod, and bluefin tuna.
Commission Regulation (EU) 2026/784 updates EU ETS aircraft operator list
Commission Regulation (EU) 2026/784 of 26 March 2026 amends Regulation (EC) No 748/2009, updating the list of aircraft operators performing aviation activities under Annex I of Directive 2003/87/EC. The list is based on Eurocontrol data and specifies the administering Member State for each operator.
Commission Implementing Decision (EU) 2026/783 amends emergency avian influenza measures
Commission Implementing Decision (EU) 2026/783 of 27 March 2026 amends the Annex to Implementing Decision (EU) 2023/2447, updating emergency measures and restricted zones in Czechia, the Netherlands, and Poland following new outbreaks of highly pathogenic avian influenza. The amendments adjust the boundaries and duration of protection and surveillance zones.
Commission Regulation (EU) 2026/562 declares certain State aid to sustainable land transport sector compatible
Commission Regulation (EU) 2026/562 of 16 March 2026 declares certain categories of State aid in the rail, inland waterways, and multimodal transport sector compatible with the internal market under Articles 93, 107, and 108 TFEU. The Regulation sets out general and specific compatibility criteria for aid schemes and individual aid, promoting coordination of transport and environmental objectives.
EU Council
Agriculture and Fisheries Council discusses Vision for Agriculture and Food, fisheries energy transition, and market issues
On 30 March 2026, EU agriculture and fisheries ministers reviewed one year of implementation of the Vision for Agriculture and Food, considering progress and the need for further actions on competitiveness, resilience, and food security. The Council also debated energy transition in EU fisheries and aquaculture, regulatory reforms, and funding challenges. Member States welcomed activation of the European Maritime, Fisheries and Aquaculture Fund (EMFAF) to support the sector amid fuel price increases. The Council adopted an amendment to the fishing opportunities Regulation, setting the total allowable catch for North-East Atlantic mackerel at 299,010 tons, reflecting a reduction of approximately 49%.
Transport, Telecommunications and Energy Council (Energy) holds informal video conference on energy market volatility
On 31 March 2026, EU energy ministers held an informal video conference to assess the impact of Middle East instability on global oil and gas markets. Ministers agreed that the EU's security of supply remains protected but called for coordinated action to address price volatility and ensure gas storage ahead of the winter season.
EP Committee Work
Budgetary Control Committee issues opinion on Horizon Europe 2028–2034
On 31 March 2026, the Committee on Budgetary Control (CONT) published its opinion on the proposal for a regulation establishing Horizon Europe for 2028–2034. Rapporteur Olivier Chastel (Renew) submitted amendments addressing transparency, administrative simplification, performance measurement, and the need for robust anti-fraud and conflict-of-interest mechanisms. The opinion also calls for structured reporting on results and financial management, and for annual performance summaries for each part of Horizon Europe.
Agriculture Committee issues draft opinion on budget expenditure tracking and performance framework
On 31 March 2026, the Committee on Agriculture and Rural Development (AGRI) published its draft opinion on the proposal for a regulation establishing a budget expenditure tracking and performance framework. Rapporteur Maria Noichl (S&D) called for reintroduction of impact indicators for the CAP, greater accountability for Member States not meeting targets, and an increase of the climate, environment, and biodiversity spending target to 50%. The opinion also proposes more granular climate tracking and enhanced transparency on land ownership and CAP subsidies.
ECON Committee issues draft opinion on European Fund for economic, social and territorial cohesion, agriculture and rural, fisheries and maritime, prosperity and security for 2028–2034
On 30 March 2026, the Committee on Economic and Monetary Affairs (ECON) released its draft opinion on the proposed regulation establishing the main EU fund for cohesion, agriculture, fisheries, prosperity, and security for the period 2028–2034. Rapporteur Thomas Bajada (S&D) led the opinion, which addresses the fund's alignment with economic governance, its contribution to EU policy priorities, and the integration of sustainability and financial discipline.
What We're Reading This Week
- Hungarian foreign minister in Moscow for energy talks with Putin amid Ukraine pipeline row: Hungary seeks to secure its energy supplies from Russia despite EU tensions over Ukraine transit routes.
- Energy crisis: 5 countries appeal to EU for windfall tax: Five EU member states urge Brussels to impose a windfall tax on energy firms to address soaring energy costs.
- Everyday plastic chemicals linked to millions of premature births worldwide: New research suggests common plastic chemicals may contribute to millions of premature births globally each year.
