The European Commission published today notification  on the total number of allowances in circulation (TNAC) in 2022 in the European carbon market. This is 1,134,794,738 quotas. The TNAC indicator plays an important role in the functioning of the Market Stability Reserve (MSR) of the EU Emissions Trading System (ETS). Determines whether quotas are withdrawn or released from the MSR.  According to Decision 2015/1814 (MSR Decision), 24 % TNAC will be placed in MSR if it exceeds the threshold of 833 million. This is achieved by reducing the volume of quotas with which member states trade in the form of an auction. If TNAC falls below the threshold of 400 million, part of the quotas from the MSR will be released for auction. In accordance with Decision 2015/1814 and based on the TNAC indicator published today, a total of 272,350,737 allowances will be placed in the MSR during the 12-month period, from September 1, 2023 to August 31, 2024. According to article 1 par. 5a of Decision 2015/1814 from 2023, any quotas held in the MSR above the auction volume from the previous year are no longer valid. Today's announcement states that 2,515,135,787 quotas in the MSR became invalid on January 1, 2023.