Prague – The designated prime minister, Andrej Babiš (ANO), stated today to ČTK that delaying ETS 2 emission allowances for one year is inadequate; the new government will advocate for a complete withdrawal from the system. In contrast, members of the outgoing caretaker government view this delay as a success. The domestic heating industry describes the EU’s climate objectives as unrealistic, arguing they will weaken the industry and diminish living standards. Analysts consider the EU agreement merely a superficial change that will not curb rising energy prices. Conversely, environmentalists commend the continued commitment to decarbonization reflected in the approved climate goals.
On Tuesday, the Presidency of the Council of the EU and European Parliament representatives reached a preliminary agreement to adjust EU climate rules, aiming to cut greenhouse gas emissions by 90 percent by 2040 compared to 1990 levels. They also decided to postpone the introduction of ETS 2 emission allowances from 2027 to 2028, pending formal approval by the European Parliament and EU member states.
Babiš announced that the new government will pass a resolution demanding a total withdrawal from ETS 2 allowances, which he claims would raise fuel and heating costs. He mentioned plans to revise the taxonomy to include natural gas and nuclear energy and to eliminate unnecessary reporting requirements. Karel Havlíček (ANO), the anticipated future minister of industry and trade, asserted that this reflects the EU’s misunderstanding of Europe’s current challenges.
The Heating Association of the Czech Republic regards the EU’s emissions reduction target as unrealistic, fearing it will precipitate significant deindustrialization and a decline in living standards, especially impacting the industrial Czech Republic. Economists offered mixed reactions to the climate targets agreement. XTB analyst Jiří Tyleček labeled the postponement a cosmetic adjustment rather than a substantial concession, noting that it does not significantly alter the economic impact on households. Lukáš Kaňok from Kalkulátor.cz acknowledged the additional time for preparation as a possible positive, but stressed the need for swift actions.
Environmentalists applauded the agreement for preserving the decarbonization trajectory for Europe and emphasized that the Czech Republic should leverage the extended timeline for better preparation. Jiří Koželouh, head of the energy program at Hnutí Duha, urged faster efforts in insulating homes and improving access to efficient public transport, warning against scaling back programs like New Green Savings or boiler subsidies, which could severely affect rural households.
The coalition government of ANO, SPD, and Motorists Themselves should cease promises to abolish the system, as this could harm the Czech Republic’s reputation in Europe and jeopardize support from the Social Climate Fund, funded by fossil fuel pricing in local heating and transport, Koželouh concluded. (10 December)
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