Czech Republic calls on EU to review carbon trading schemes, Prime Minister Andrej Babis said in a letter to EU institutions and fellow leaders, Reuters reported. He urged capping the cost of emissions allowances under the Emissions Trading System and postponing ETS2.
Babis told reporters he would seek support from other leaders, including those of France and Italy, ahead of the bloc's informal summit, Reuters said. He argued that allowance prices have risen far above earlier forecasts and now impose a heavy burden on industry.
The Czech leader also pressed for a single pan‑European emissions goal, and warned that additional partial targets limit member states' decision making in energy, Czech Radio reported. He asked that the rollout of ETS2 for buildings and transport be delayed until at least 2030, according to Reuters.
Reactions Plans And Market Context
Prague submitted a proposal to the European Commission seeking reforms to ETS2, a document backed by 17 other member states urged greater price stability and regular reporting on renewables, the Czech government said. Prime Minister Petr Fiala said a qualified majority backs the concerns and a joint non‑paper is advancing.
Some countries, including Poland, have long argued that EU carbon prices are too high and urged Brussels to act, saying rises are driven by financial speculation rather than genuine industrial demand, Reuters noted. Other member states see a strong carbon price as essential to meeting climate targets.
Analysts have projected rising carbon costs. Montel analysts expected an average EUA price of €92.02 per tonne in 2026, ING forecasted an average of €83 this year compared with almost €75 in 2025, and Climate Market Now said the market could aim for a historic high of €101.25 per tonne in the first quarter, according to reporting in the sources.
BBVA's baseline scenario sees allowances trading in a €80 to €100 range for 2026, and the GMK Center forecasted average EU CO2 prices reaching €126 per tonne by 2030, a consensus echoed by multiple analytical institutions listed in the reporting.
