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Hladík on X: The EC has heard the Czech request and proposed changes to the ETS2 permit system

by AI | 21.Oct 2025 | Europe in brief AI

Hladík urged the European Commission to discuss the matter in an expedited manner so that the European Parliament could approve it this year.

European Commission Headquarters (c) ALEX MICSIK / AGERPRES FOTO

Luxembourg – The European Commission has heeded the Czech request to amend the new ETS2 emissions allowance system and presented a specific legislative change proposal, informed Czech Minister of the Environment Petr Hladík on the social network X. The proposals were presented today to ministers at a meeting in Luxembourg by the Commissioner for Climate Wopke Hoekstra. Their aim is primarily to stabilize the price of emissions allowances.

“A success for the Czech Republic! The European Commission has heeded our request to amend the EU ETS2 system and presented a specific legislative change proposal that aligns exactly with our demands,” wrote Hladík. According to him, the European Commission described a total of five mechanisms at the ministerial meeting that will ensure the long-term maintenance of the emissions allowance price at 45 euros per ton of carbon dioxide (CO2). The mechanisms will be triggered as soon as the allowance price exceeds this value. “The allowance price will thus be predictable and stable,” Hladík told reporters in Luxembourg. “This means that it will not negatively impact Czech households, businesses, or entrepreneurs, which we have long demanded,” the minister added.

Negotiations should now begin between the European Commission, member states gathered in the EU Council, and the European Parliament. In this context, Hladík stated that he urged the European Commission to discuss the matter in an expedited manner so that the European Parliament could approve it within this year.

The new ETS 2 system is set to expand trading in allowances to include road transport and building heating, for example. According to current plans, it is to take effect from 2027. The Czech Republic is part of a group of nearly twenty countries that have requested changes to the system. All concerns were outlined by Prague in a letter sent to the EU executive on behalf of 19 countries by Minister Hladík. Today, he received a response to the letter from Commissioner Hoekstra.

Currently, the EU operates the ETS allowance system, which applies to power plants and industrial enterprises producing greenhouse gases. Each allowance permits the release of one ton of carbon dioxide into the atmosphere, or an equivalent amount of another gas. The revenues from their sale are to be used by EU member states for climate protection measures. (October 21)