ETS2

Emissions trading is a key tool for the European Union in the fight against climate change. The recently proposed ETS2 brings major changes that extend the scope of this mechanism to new sectors such as transport and housing. The aim is to reduce greenhouse gas emissions and encourage a shift to more sustainable ways of operating. Filip Křenek, analyst at EUROPEUM Institute, commented for ČRo Plus.

Environment Minister Petr Hladík is heading to Brussels to negotiate a postponement of the proposed ETS2 directive, which introduces a new emissions trading system. The government is seeking not only to postpone the directive but also to amend it to strengthen consumer protection. EUROPEUM Institute analyst Rebeka Hengalová commented for ČT24.

This week, the Government will discuss in the third reading an amendment to the Emissions Trading Act, which also includes so-called household allowances. Under ETS2, these will charge for emissions from road transport and local heating - so they can help invest in infrastructure, renewable energy and support socially vulnerable groups. EUROPEUM Institute research fellow Rebeka Hengalová and others write.

The extension of the emissions trading system for local heating and road transport, the so-called ETS2, is due to come into effect in 2027. ETS2 now needs to be adopted into Czech legislation under the Emissions Trading Act. In this factsheet you will find basic facts and answers to questions that the Czech public often asks. Please also see the attached materials from the organisations that contributed to the factsheet.

Already 3% of households in the Czech Republic are at risk of transport poverty, and this situation could worsen in a few years' time. Indeed, with the introduction of the ETS2, the emissions trading scheme for households, which extends emissions trading to road transport and local heating of buildings, fuel prices are expected to rise from 2027. This will have an impact on household budgets. Read the factsheet put together by Research Fellow at EUROPEUM Institute Rebeka Hengalová to find out exactly what transport poverty is and how it can be prevented and eradicated.