Czech Republic and 17 other EU countries request a change in trading with ETS 2 allowances
Prague – The Czech Republic has sent the European Commission (EC) requests to change the trading of emission allowances from transport and heating of buildings, referred to as ETS 2. The document has been signed by another 17 EU member states, the Ministry of the Environment informed CTK in a press release today. The states are requesting, for example, regular publication of information on the pace of renewable energy implementation or the establishment of a mechanism that would limit fluctuations in allowance prices.
For the Czech proposal to abolish or postpone the ETS 2 emission trading system, it has not been possible to negotiate sufficient support in the EU. “The Czech Republic is therefore proceeding in steps and has prepared a joint document, a so-called non-paper, which proposes specific adjustments to ETS2 and which has already been signed by a qualified majority of the union states, clearly showing that our concerns are not isolated,” said Prime Minister Petr Fiala (ODS).
“We are doing our utmost to ensure that EU climate policy is not only ambitious but also socially acceptable, economically sensible, and does not have a negative impact on our households or businesses,” he added. The document has been supported by, for example, Germany, Italy, Spain, Poland, Austria, and Belgium.
The states want the prices of emission allowances to be predictable. One of the five points of the document is therefore the timely start of auctions in 2026, which, according to the Ministry of the Environment, would reduce uncertainty regarding prices in 2027. Furthermore, the states are requesting the strengthening and streamlining of the Market Stability Reserve (MSR) tool. “It should thus be possible to place more allowances on the market than currently planned. At the same time, there would be the option to release additional allowances whenever needed, not just once a year. The goal is also to strengthen the threshold for the allowance price to 45 euros, above which additional allowances will be released to the market to lower the price,” said Minister of the Environment Petr Hladík (KDU-ČSL).
According to the states, a mechanism should also be created to ensure that at the end of the emission period 2030-2033, the allowance price does not increase and remains stable. In addition to changing the MSR mechanism, the states are requesting a change to part of the directive on the ETS allowance system, which sets the conditions for releasing allowances to the market and their number. (July 2)
