The regeneration phase is the final stage of the Calvin cycle, where the five-carbon sugar ribulose bisphosphate (RuBP) is regenerated, allowing the cycle to continue. This phase is essential because it enables the fixation of carbon dioxide in subsequent turns of the cycle, thus playing a critical role in converting inorganic carbon into organic molecules. It ensures that the cycle can sustain itself by replenishing RuBP from the previous stages of carbon fixation and reduction.