Saturday, 15 March 2025
The Czech Republic will advocate for postponing the implementation of the ETS 2 emission allowance system in the European Union until at least 2028, Prime Minister Petr Fiala (ODS) announced at a press conference today. Under current EU plans, the system, which would extend emission trading to sectors like road transport and heating of buildings, is set to take effect in 2027. The Czech government intends to use this delay to modify the system to better protect against sharp increases in energy prices.
At the same time, the Czech government rejects the European Commission’s new proposal to reduce emissions by 90% by 2040 compared to 1990 levels, calling for a broader revision of the EU’s environmental policies. “We need to set realistic environmental goals that do not harm the economy,” Fiala emphasized.
The Czech Republic’s key proposal focuses on delaying the ETS 2 system to 2028, during which time additional safeguards would be implemented to protect households, businesses, and industries from energy cost surges. “We will work to persuade our EU partners to join us in postponing the ETS 2 system,” Fiala stated. “If this does not happen, rising costs could severely impact households and the economy, which we cannot allow.”
Fiala stressed that while the Czech Republic would prefer a longer delay—until European energy prices become competitive—the government remains pragmatic, aiming to achieve a broad consensus. Environment Minister Petr Hladík (KDU-ČSL) added that an informal document (non-paper) detailing the proposal has already been approved by the government and shared with counterparts across the EU. “We have received informal support from several Central European and key Western European countries,” Hladík said, refraining from naming specific states. A formal coalition of supporting countries is expected to emerge in the coming weeks.
Hladík also stressed the need for clarity in the trading system. “It is essential to specify how allowances will be traded, calculated, and priced to avoid uncertainty,” he added. According to Fiala, an amendment to existing EU legislation on emission allowances would be the optimal solution.
In addition to advocating for changes to ETS 2, the Czech Republic will push for adjustments to the EU’s broader environmental objectives. The government firmly rejects the European Commission’s proposal to cut emissions by 90% by 2040. Fiala also reiterated the Czech Republic’s efforts to revise the EU’s automotive industry targets, recalling the joint initiative with Italy—backed by other states—to ease upcoming sanctions on automakers failing to meet environmental goals starting next year.
Currently, emission allowances must be purchased by power plants and industrial facilities emitting greenhouse gases such as carbon dioxide. One allowance permits the release of one tonne of CO₂ or its equivalent. Revenues from the allowance system are intended to support climate protection measures across the EU. In the Czech Republic, proceeds from allowances are projected to reach approximately CZK 40 billion this year.
Fiala’s announcement underscores the Czech Republic’s commitment to balancing environmental policy with economic stability, ensuring affordability and competitiveness as key components of future EU climate measures.
Source: CTK
