Joint pressure on Brussels: Czechia and Italy push for emissions allowance reform

The Czech Republic and Italy will work together to seek major changes to emissions allowances and the European energy taxonomy. Industry and Trade Minister Karel Havlíček (ANO) agreed on this with his Italian counterparts during a working visit to Rome. Other topics discussed included trade cooperation, joint investment and further ways to strengthen European competitiveness. The Ministry of Industry and Trade (MPO) informed the Czech News Agency (ČTK) today.

During a two-day working visit to Italy on 20 and 21 May, Havlíček met Italian Environment and Energy Security Minister Gilberto Pichetto Fratin, Foreign Minister Antonio Tajani and Minister for Enterprise Adolfo Urso. The visit followed a recent meeting between Prime Minister Andrej Babiš (ANO) and Italian Prime Minister Giorgia Meloni.

Energy was one of the main topics of the talks. “Czechia has another partner in its push on energy. Italian Environment and Energy Security Minister Gilberto Pichetto Fratin and I agreed unequivocally on the need to fundamentally change the emissions allowance system and the conditions of the taxonomy,” Havlíček said.

Minister Urso also backed Czech proposals for major changes to emissions allowance trading and lower allowance prices, he said. “The meeting in Rome was about the tactics for persuading other countries,” the Czech minister noted. Together with Italy, the Czech Republic will press the EU to respond to rising energy prices and provide greater support to member states and their businesses, especially small and medium-sized enterprises, he said. According to the MPO, Havlíček also discussed the automotive and space sectors, as well as simplifying regulations for small and medium-sized enterprises, with Italy’s minister for enterprise.

The Czech Republic is one of the EU countries calling loudly for changes to the EU ETS emissions allowance system. After the EU summit in March, Prime Minister Babiš said that Czechia would continue to seek allies for its proposals, which include exempting energy-intensive industry from the allowance system until 2034. The European Commission is expected to present a revision of the EU ETS1 emissions allowance system in July.

The government has also long criticised the extension of emissions allowance trading to road transport and heating (EU ETS 2). The EU ETS 2 system is not yet operational; following a one-year delay, it is due to start in 2028.

Havlíček also addressed the Italian parliament in Rome at the conference Meeting with Czech Republic – a strategic partner for Italy, which he opened together with Deputy Prime Minister Tajani. Havlíček, who was accompanied by representatives of Czech companies, discussed trade policy with him in particular.

“The Czech Republic and Italy are traditional industrial countries with a strong focus on international trade. It is in our vital interest to maintain competitiveness in Europe and free and secure trade around the world,” added Czech Ambassador to Italy Jan Kohout, who also attended the conference.

According to data from the Czech Statistical Office, Italy is the Czech Republic’s sixth-largest trading partner. Last year, bilateral trade exceeded 18 billion euros (around 438 billion crowns), and the value has continued to grow in recent years.