Czech Prime Minister Andrej Babis has called on the European Union to reform carbon market rules by imposing a cap on carbon quota prices and postponing the expansion of the EU Emissions Trading System (EU ETS), according to a Reuters report.
In a letter sent to EU leaders before a meeting on competitiveness, Babis argued that higher carbon prices significantly increase energy costs and weaken the competitiveness of industry across Europe. He warned that sustained high emissions prices could accelerate the movement of industrial production outside the EU.The proposal includes postponing the implementation of ETS 2
The Czech government has specifically called for postponing the second phase of ETS expansion, commonly referred to as ETS 2, until at least 2030. ETS 2 is designed to extend carbon pricing to sectors such as construction and transportation, and is currently scheduled to begin in 2028, following an earlier delay from 2027.
Babis said that limiting carbon price increases would help support industrial activity while maintaining the overall direction of EU climate policy.
The EU carbon market remains a central element of climate policy
The EU ETS, introduced in 2005, remains the main instrument of the bloc's climate policy. The system requires electricity producers and industrial companies to purchase emission permits for every metric ton of carbon dioxide emitted, creating a financial incentive for
