The Prime Minister of the Czech Republic, Andrej Babiš, has urged the leadership of the European Union to reconsider the existing carbon emissions trading schemes in order to reduce the financial burden on energy consumers. In a letter to EU institutions and leaders of member states, released on February 2, Babiš emphasized the need to limit the cost of emissions allowances within the European Emissions Trading System (ETS) and called for the postponement of the implementation of the second phase of this initiative.
This is reported by Finway
Czech Republic’s Position on Carbon Prices and EU Industry
At a press conference, the Prime Minister stated his intention to seek support for this initiative among colleagues from other countries, particularly France and Italy, ahead of the informal EU summit scheduled for February 12. According to Babiš, the current level of emissions prices significantly exceeds forecasts from previous years, negatively impacting the competitiveness of European manufacturers.
“Prices for allowances in previous years were forecasted to be much lower than the current level, creating a significant burden on European industry.”
Babiš also highlighted the importance of a Europe-wide goal for reducing carbon emissions but warned against setting additional partial targets. In his view, this restricts countries’ flexibility in shaping their own energy policies and may be less effective and more costly compared to individual approaches.
Calls to Postpone ETS2 and Expert Predictions
Separately, the Czech Prime Minister proposed delaying the implementation of the new emissions trading system for the construction and transport sectors (ETS2) until at least 2030. It should be noted that EU countries had previously agreed to postpone the start of ETS2 from 2027 to 2028.
The issue of high carbon allowance prices has long concerned some member states, particularly Poland, which insists on the need for Brussels’ intervention to prevent price spikes caused by financial speculation. Meanwhile, other countries emphasize that high emissions prices stimulate investment in clean technologies and contribute to environmental transformation.
Carbon market analysts expect further increases in European emissions prices in 2026. According to Montel’s forecasts, the average price of an emissions allowance (EUA) will be €92.02 per ton, which is 24% higher than last year. ING analysts predict that this year the average price of allowances will reach €83 per ton, compared to nearly €75 per ton in 2025. Climate Market Now believes that in the first quarter, the market could set a new historical high for the benchmark contract at €101.25 per ton. BBVA’s scenario for 2026 anticipates price fluctuations in the range of €80–100 per ton.