Czech government pushes for delay of new permit system until 2028
- The Czech Republic is seeking a delay in the new emission allowance system aimed at sectors including transport and heating.
- Prime Minister Petr Fiala emphasizes the need for realistic environmental goals to avoid negative impacts on the economy.
- If successful, this delay will help protect households and businesses from rising energy costs.
In Prague, on December 16, 2024, Prime Minister Petr Fiala announced that the Czech Republic would advocate for a delay in the implementation of the new ETS 2 emission allowance system until at least 2028. This decision comes ahead of the planned start for the system in 2027, which aims to broaden emission trading to sectors such as road transport and building heating. The Czech government intends to utilize this postponement to better adapt the regulations, focusing on the protection of consumers from sudden spikes in energy prices. Prime Minister Fiala criticized the European Commission's new proposal to reduce emissions by 2040, stating that it requires a revision. Fiala argues that environmental objectives need to be more feasible to avoid detrimental effects on the economy. The Czech government is preparing specific proposals to make adjustments to the forthcoming emission allowance trading framework while advocating for broad agreement among EU member states regarding the scheduling of the ETS 2 system. Czech officials are particularly concerned that immediate implementation could lead to increased costs imposed on households, industries, and entrepreneurs. Fiala emphasized the importance of realigning environmental goals with economic realities, asserting that the Czech Republic's successful advocacy for a delay would protect citizens from financial burdens linked to energy price fluctuations. Furthermore, Fiala expressed openness to a longer postponement, contingent upon the establishment of competitive energy prices across Europe. The European Union's existing structures allow for the purchase of emission allowances by power plants and industries that generate greenhouse gases. The allowances permit the emission of one ton of CO2 or equivalent gases, with expected revenues from these allowances to contribute about 40 billion crowns to climate protection initiatives in the Czech Republic this year. The Czech government's approach reflects its broader strategy to manage the interplay between environmental policy and economic prosperity.