Associations: The government must be active in the EU on the adjustment of ETS 2, non-implementation could be a problem

Prague – According to representatives of domestic industry, government activities to adjust or abolish the ETS 2 emissions allowance system must be conducted primarily at the European level. They say that a possible non-introduction of the system only in the Czech Republic could then lead to problems for Czech companies. However, they support the cabinet’s negative stance on allowances, because in their view it would weaken the competitiveness of Czech businesses. This follows from comments by industrial associations and analysts for ČTK.

The government today rejected the ETS 2 emissions allowance system, which applies to carbon dioxide emissions from fuel combustion in buildings and road transport, Andrej Babiš (ANO), the prime minister of the ANO, SPD and Motorists cabinet, announced today after the meeting. He will ask MEPs to seek allies to reject the system. According to him, the Czech Republic will propose a concrete solution at the European Council summit on 12 February. He did not want to specify the particular solutions.

“The introduction of ETS 2 follows from existing legislation and is a certain levelling of the playing field with those who already pay for emissions. The political debate on postponing the start of charging, or on other adjustments, needs to be conducted only at the European level. In this, the government’s activity can be supported,” said the director general of the Confederation of Industry Daniel Urban. However, he sees the possible non-introduction of the system only in the Czech Republic as problematic. “We operate in a single market and are exposing ourselves to unnecessary problems,” Urban warned.

The Chamber of Commerce welcomed the government’s negative stance on the ETS 2 emissions allowance system. According to the Chamber, in practice the system would mean direct pressure on rising prices of energy, transport and housing, especially for households and small businesses, and at the same time would further weaken the competitiveness of the Czech economy. “If the Czech Republic is to succeed with its efforts to revise European policies, it must actively build coalitions with other states in the Council of the EU and in the European Parliament. For a whole range of European legislation, a real assessment of the impacts on the Czech Republic is still lacking, and without a coordinated approach it will not be possible to mitigate the negative consequences,” emphasized the president of the Chamber Zdeněk Zajíček.

According to the Czech Energy Association, today’s government decision at least declares how the Czech Republic will proceed, which will allow companies among energy and fuel suppliers to set their internal processes and business conditions in line with the government’s position. According to Capitalinked.com analyst Radim Dohnal, this is a purely political proclamation. He pointed out that the state will need to gain broader support in the EU or the European Parliament. “We do not know how this will turn out. However, I would like to remind you that fuel prices for households and gas prices, after taking into account the growth in net wages, are significantly cheaper than, for example, 25 years ago, before the EU rightly introduced the so‑called unbundling. I expect that the price of fuel and the price of gas for households will fall during 2026,” Dohnal added. (16 December)