A dispute over the European Union’s revised emissions trading scheme, known as ETS 2, is likely to play a part in the upcoming parliamentary elections in Czechia, where opposition figures are accusing Brussels of driving up the cost of living and bypassing national sovereignty.
ETS 2, part of the EU’s broader “Fit for 55” climate package designed to cut greenhouse gas emissions across the bloc by 55 percent by 2030, extends the carbon emissions pricing mechanism to sectors previously untouched, including road transport and household heating.
Under the new system, fuel suppliers will be required to purchase allowances for the carbon emissions generated by their products, a cost likely to be passed directly onto consumers.
Karel Havlíček, deputy leader of the Czech opposition ANO party, which is currently topping national polls, has sounded the alarm about the scheme’s consequences. “We will have the balls to stand up to ETS 2 allowances. It will be a crucial thing for us,” Havlíček said in an interview with Echo24. He argued that the public is only now beginning to understand the true impact: significantly higher heating and fuel bills in the years ahead.
According to Havlíček, the trading of ETS 2 allowances has already begun, with prices currently hovering between €70 and €80 per ton — nearly double what the European Commission initially projected. Citing estimates from Bloomberg, he warned that by 2030, the cost of gas heating could rise by 41 percent and fuel by 30 percent, with carbon prices potentially climbing to €149 per ton. “If the allowance were to reach €150 by 2029 — a completely realistic option in my opinion — it would make another 7.50 crowns on top of the 3.50 per liter [of fuel],” he said. “That is, 11 crowns (€0.44) per liter more.”
The ANO party blames the ruling government led by Petr Fiala for supporting the scheme during the Czech Republic’s presidency of the EU Council, even though previous governments had expressed formal opposition to the inclusion of households in the emissions market. While the Fiala government claims it managed to secure caps on the allowance prices, Havlíček dismissed this as “technically nonsense,” accusing the prime minister of misunderstanding the mechanism entirely.
Beyond the cost implications, ETS 2 is also fueling deeper political rifts between national governments and the European Commission. Opponents argue that the scheme represents a top-down imposition from Brussels, forcing EU member states to adopt costly reforms with little room for democratic debate or national discretion.
Despite an EU deadline for member states to implement the scheme into national law by June 2024, Havlíček claims the current Czech government has attempted to delay enforcement through legal maneuvering. But, he warns, “every future government after Fiala will be left with a gift in the form of the obligation to transpose ETS 2 into Czech legislation.”
He described the Fiala administration as leaving a “minefield” regarding energy policy for the next government, but insisted the ANO would “not allow the disaster of emission allowances for households, which were baked during the Czech EU Presidency.”
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