Czech PM Pushes for EU Carbon Market Reform to Reduce Energy Costs

Czech PM Andrej Babis urged the EU to cap carbon emissions trading prices and postpone its second phase to alleviate energy costs. He plans to lobby EU leaders for support, emphasizing the strain of high allowance prices on industries. The EU carbon market is essential for reducing CO2 emissions.

Czech Prime Minister Andrej Babis has called on the European Union to reform its carbon emissions trading system, aiming to reduce soaring energy prices. In a letter addressed to top EU officials, Babis urged for a cap on emissions allowances and the delay of the system's second phase.

During a press briefing, Babis expressed his intention to garner support from EU leaders such as France and Italy, especially ahead of an informal summit scheduled for February 12. He highlighted that the current high prices of allowances are placing a heavy burden on the European industrial sector.

The EU's carbon market, a crucial mechanism for reducing CO2 emissions, charges industries for carbon production to promote cleaner technologies. Although carbon prices have been climbing, Babis is advocating for further delays in expanding the scheme to include buildings and transport until at least 2030, amidst concerns over financial speculation driving up costs.

(With inputs from agencies.)