Czechia and V4 secured new ETS2 demands at summit

Brussels, 16 October (ČTK) - Several European Union member states, including Czechia, have managed to include a new call for the European Commission to reassess the impacts of the ETS2 emissions trading system in the EU summit conclusions. This is set out in the final conclusions from the first day of the meeting, which took place on Thursday. The European Council also newly stressed explicitly that the ETS review should aim to limit fluctuations in emissions allowance prices and mitigate their impact on electricity prices. Both changes were sought by the Visegrad Group (V4) countries—Czechia, Slovakia, Poland and Hungary—with Italy and Greece also supporting their demands.

"The European Council calls on the European Commission to reassess the impacts of the ETS2 system, in particular its design and safeguards," the new Article 8 of the summit conclusions states.

A new Article 7 was also added on the so-called Market Stability Reserve (MSR), which helps regulate the supply of allowances on the market and smooth out fluctuations. "The European Council calls on the co-legislators to accelerate the ongoing legislative process concerning the Market Stability Reserve with a view to mitigating excessive price fluctuations," the text says.

The Commission had already proposed certain changes to the emissions trading system and the Market Stability Reserve earlier this year, but Czech officials have repeatedly said they are insufficient. The European Parliament is also discussing the proposed changes.

Presidents and prime ministers began discussing high energy prices at the summit on Thursday morning, but the talks dragged on, and it was subsequently decided that they would return to the issue later in the evening. Instead, they began debating the proposed new seven-year EU budget from 2028 in the afternoon. Czech Prime Minister Andrej Babiš had earlier said he would push for further changes to the ETS emissions trading system, and on his arrival at Thursday’s meeting he said Slovakia, which currently holds the V4 presidency, would present the group’s proposed changes to the conclusions.

According to ČTK, the V4 countries sought three changes to the conclusions, two of which appear to have been adopted and a third partially. They had originally been said to be seeking to include a call for the European Commission to review the ETS2 system and postpone its introduction until at least 2030. Germany and several other countries opposed this.