Alina TEODORESCU

Alina TEODORESCU

EU carbon market analyst

Czechia and Slovakia Populist PMs Call for Temporary Suspension of EU ETS

High Carbon Prices Remain a Recurring Theme in Babiš’s Rhetoric

14 January 2025

Following a joint meeting with his Slovak counterpart, the populist Czech prime minister Andrej Babiš said he plans to draft a letter to EU governments calling, among other measures, for a temporary suspension of the EU Emissions Trading System.

According to Babiš, the EU had forecast that the price of an emissions allowance would reach €80 by 2050—a level that has already been hit. “The EU has a serious problem — companies are leaving because of cheaper energy elsewhere,” he said. 

At the same press conference, the Slovak counterpart said his country is seeking a four- to five-year suspension of the EU Emissions Trading System. “We must stop the madness around the Green Deal,” Fico said, describing the proposed pause as “a holiday.” 

Opposition to rapid increases in ETS prices is a recurring theme in Andrej Babiš’s rhetoric. In September 2021 he floated the idea of putting a cap on carbon prices, suggesting a ceiling of €30, without gaining any support, except from Hungary.  

High carbon prices have remained a key element of his political platform, with promises of “cheap energy for all.” Most recently, during a tripartite meeting between representatives of the Czech government coalition, trade unions, and employers held this week, emissions allowances were one of the main topics discussed.

“ETS1 is a mistake; allowances have become a speculative tool,” said the head of the Czech Confederation of Industry. He added that current allowance prices are far above original estimates, with very negative impacts already evident across the industrial sector.

In 2021, the Polish Prime Minister Mateusz Morawiecki also called for the temporary suspension of the EU ETS in order to stabilize energy prices in Europe with the Czech government supporting Poland’s position.

“A new scheme ET ETS 2 that will add a carbon price to heating and motor fuels has already been postponed to 2028 among strong resistance from, in particular, central European EU members and the right-wing of the European Parliament”, noted Euractiv, suggesting that the suggesting that further delays or additional changes to the EU’s carbon pricing framework cannot be completely ruled out.

The next informal meeting of European heads of state and government is scheduled on February 12, 2026, in Belgium.