Babiš calls for reform of emission allowances, wants cheaper energy in the EU

Czech Prime Minister Andrej Babiš has called on the European Union to reform the emissions trading system, which he believes is one of the reasons for high energy prices in Europe. In a letter addressed to EU leaders and the Union's leadership, he proposed capping permit prices under the ETS system and postponing the introduction of its second phase, known as ETS2 for buildings and transport, until at least 2030.

Babiš points out that carbon permit prices have risen significantly above the levels anticipated in the past, which he believes threatens the competitiveness of European industry and increases the risk of its relocation outside the EU.

Ahead of the informal EU summit on February 12, he wants to gain the support of other member states, including France and Italy.

While countries such as Poland have long criticized high carbon prices and talked about speculative influences, other countries consider strong permit prices to be a necessary condition for meeting the EU's climate targets.

(reuters, mja)