Czech emissions trading law amendment to face motion for rejection

The government’s amendment to the Act on Trading in Emission Allowances will face a motion for rejection at its third reading. The motion was put forward during today’s second reading by opposition SPD MP Jiří Kobza, who had already sought to reject the bill at its first reading. Kobza said emissions trading would make life more expensive for citizens. The Chamber of Deputies did not finish the bill’s second reading today and is likely to return to it next week.

The government bill would mainly introduce a rule that proceeds from the sale of emission allowances may be used only for measures to reduce or compensate for the effects of climate change. The amendment responds to a revised EU directive requiring all revenue from allowances to be used for climate protection. In line with the European directive, the bill also adjusts the rules on emission allowances for maritime transport. It raises the maximum fines for the most serious offences from five to 20 million crowns.

ANO MPs again pointed out that the government is not transposing the entire European directive into law, having left out the section introducing the ETS 2 system, which also covers transport and heating. According to MP Berenika Peštová (ANO), the government got cold feet. Former environment minister Richard Brabec (ANO) remarked that the government had fallen into its own trap when it realised what approval of the measure would bring.

Prime Minister Petr Fiala (ODS) said in the Chamber of Deputies on Thursday that he considers it necessary to postpone the introduction of the EU ETS 2 system. He said the Czech side would call for a review of the system.

Emission allowances are bought by power plants and other industrial companies that emit greenhouse gases, mainly carbon dioxide. One allowance entitles a company to emit one tonne of carbon dioxide, or an equivalent amount of another gas. Airlines must also report their emissions.

The Chamber of Deputies’ session ended today at 14:00, although MPs had not completed the bill’s second reading. They will meet again on Tuesday at 14:00.