Prague – The Czech Republic has secured the backing of a qualified majority of EU member states for amendments to the proposed ETS 2 emissions trading system. Prime Minister Petr Fiala (ODS) announced at a press conference that the proposal includes measures such as a cap on permit prices and modifications to the trading framework. He emphasized that the government is opposed to implementing the new permit system, as it may further drive up fuel and housing costs, and aims to continue advocating for its complete repeal, though it currently lacks sufficient support.
The ETS 2 emissions trading system is designed to broaden the scope of permit trading to encompass sectors like road transport and building heating, with an anticipated implementation date in 2027. Experts warn that this system could considerably raise household energy and fuel expenses. “We will not introduce new emissions permits because we do not want to subject citizens to increased fuel or housing prices. People should not bear the burden of unwarranted ambitions. Instead, we are focused on reforming and abolishing the entire initiative,” stated Fiala.
In the past few months, the Czech Republic has launched an initiative within the EU to revise the new permit system. “Today, we successfully garnered the backing of a qualified majority of EU states for a fundamental overhaul of emissions permits, ensuring that significant increases in housing and fuel costs are avoided,” the Prime Minister reported. He noted that the government is moving forward in stages with its initiative and will persist in seeking EU support for either postponing or completely abolishing the ETS 2 system.
The revision proposal for the new permit system, which has garnered Czech support, includes, as outlined by Minister of the Environment Petr Hladík, five primary adjustments. The most significant adjustment is expected to be the establishment of a price cap on permits at 45 euros per ton of carbon dioxide. Other proposed changes encompass modifications to the trading system, the start of preliminary permit auctions as early as 2026, regular dissemination of key data and forecasts within the system, and the extension of the permit reserve. Fiala expressed hope that the European Commission would integrate these proposals into the system this fall. (June 25)
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