Prague – Representatives from the domestic industry urge that any government measures to modify or eliminate the ETS 2 emissions allowance system should primarily occur at the European level. They warn that not implementing the system solely in the Czech Republic could create challenges for local companies. Nonetheless, they support the cabinet’s opposition to the allowances, arguing it could undermine the competitiveness of Czech businesses. This sentiment emerged from statements by industrial associations and analysts for ČTK.
Today, Prime Minister Andrej Babiš (ANO) announced after a cabinet meeting that the government has rejected the ETS 2 emissions allowance system, which pertains to carbon dioxide emissions from fuel combustion in buildings and road transport. He will urge Members of the European Parliament to find allies against the system, and the Czech Republic plans to propose a specific solution at the European Council summit on February 12, though he did not disclose any specific proposals.
“The introduction of ETS 2 is rooted in existing legislation and aims to level the playing field for those already bearing emissions costs. The political discourse around delaying implementation or other adjustments should be conducted exclusively at the European level, and the government can be supported in this effort,” stated Daniel Urban, the director general of the Confederation of Industry. He expressed concerns regarding the potential non-implementation of the system in the Czech Republic, noting, “We operate within a single market and would be facing unnecessary challenges.”
The Chamber of Commerce praised the government’s opposition to the ETS 2 emissions allowance system. They asserted that the system would lead to increased energy, transport, and housing costs, particularly affecting households and small businesses, while further weakening the competitiveness of the Czech economy. “For the Czech Republic to succeed in revising European policies, it must actively form coalitions with other EU member states and the European Parliament. A genuine assessment of the impact of various European legislations on the Czech Republic is still lacking, and without a coordinated approach, it will be impossible to alleviate negative repercussions,” emphasized Chamber President Zdeněk Zajíček.
The Czech Energy Association noted that the government’s decision clarifies the Czech Republic’s stance, allowing energy and fuel suppliers to align their internal processes and business strategies accordingly. Analyst Radim Dohnal from Capitalinked.com described the announcement as a political statement, highlighting that the state needs broader support within the EU or the European Parliament. “The outcome remains uncertain. However, it’s worth mentioning that current fuel and gas prices for households, adjusted for wage growth, are significantly lower than they were 25 years ago, before the EU introduced unbundling. I anticipate a decrease in fuel and gas prices for households by 2026,” Dohnal remarked. (16 December)
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