Czech Republic Challenges EU's Emissions Plan Amid Global Competition

The Czech Republic's new government, under Prime Minister Andrej Babis, is opposing the EU's emissions trading scheme (ETS2), fearing it harms competitiveness and raises energy costs. Czech Industry Minister Karel Havlicek emphasizes keeping pace with global powers like China and the US, pushing for a system overhaul.

The newly formed Czech Republic government, led by Prime Minister Andrej Babis, is making waves by rejecting the European Union's next-generation emissions trading scheme, ETS2. The scheme, part of the Green Deal, aims to curtail emissions through building and transport incentives beginning in 2028.

Czech Industry Minister Karel Havlicek criticized the scheme, arguing that it could jeopardize the country's industrial competitiveness and inflate energy costs. Havlicek highlighted the need for the Czech Republic to maintain competitiveness against major powers like China and the United States.

The Czech government's move might lead to a confrontation with the EU as it seeks support to abolish ETS2, highlighting the potential economic burden. Their stance indicates a strategic pivot to ensure domestic industries remain viable without excessive EU-imposed constraints.

(With inputs from agencies.)