Commissioner Hoekstra to present proposal to stabilize emissions allowance prices

Luxembourg, 20 October (CTK correspondent) - Climate Commissioner Wopke Hoekstra will present the European Commission's proposal to stabilize prices for new emissions allowances for household heating and transport fuels (ETS2) at Tuesday's meeting of EU environment ministers in Luxembourg. This is according to a letter from Commission President Ursula von der Leyen to member states, which CTK has seen. Czech Prime Minister Petr Fiala said a month ago that the EU executive would accept the Czech proposal. Fiala called the decision a major success at the time, although Czechia's aim is not to introduce these emissions allowances at all. So far, however, it has not been possible to secure majority support for that.

The new ETS 2 emissions allowance system is set to extend allowance trading to areas such as road transport and building heating. Under current plans, it is due to take effect in 2027. Czechia is among almost two dozen countries calling for changes to the system.

According to the Czech Ministry of the Environment, the climate commissioner has previously said that the European Commission, like Czechia, is unequivocally unwilling to accept excessively high prices and understands the concerns of Czechia and other countries in the bloc. Prague set out all its concerns in a letter sent to the EU executive on behalf of 19 countries by Environment Minister Petr Hladík.

"Some of you have expressed concerns about introducing a carbon price on fuels used for heating and road transport (ETS2). I remain convinced that a market-based approach, combined with other measures, is the right way to modernize these sectors," von der Leyen said in a letter sent to EU presidents and prime ministers just days before the EU summit.

Competitiveness of the Union and the achievement of climate targets are also set to be among the main topics at the summit.

"The ETS2 system should be introduced gradually and smoothly. Commissioner Hoekstra will therefore announce upcoming proposals at the Environment Council meeting on 21 October to address concerns about excessively high or volatile prices, following up on the letter he received from 19 member states," the Commission president added, saying it was in the EU's interest to "ensure a predictable price trajectory".

The EU currently operates the ETS allowance system, which covers power plants and industrial companies that produce greenhouse gases. Each allowance permits the release of one tonne of carbon dioxide into the atmosphere, or an equivalent amount of another gas. EU member states are to use the revenue from their sale for climate protection measures.