When European Council President António Costa visited Brno to meet Czech Prime Minister Petr Fiala, the conversation was dominated by the future of the EU’s Emissions Trading System for road transport and buildings, known as ETS2. While both leaders touched on broader issues of foreign policy and the economy, the Czech government made clear that its priority is to push for a revision of ETS2 before it comes into force in 2027. Fiala has been blunt in recent weeks: the current design risks driving up heating and transport costs for households and weakening Europe’s industrial competitiveness.
Building a coalition against ETS2
Prague is not acting alone. This summer the Czech government circulated a joint non-paper to the European Commission, endorsed by 18 member states, calling for targeted changes to ETS2. While the Czech position leans toward postponement or even abolition, the broader coalition is focused on introducing safeguards to prevent excessive volatility in allowance prices and to shield consumers from sharp cost increases. Fiala used the Brno meeting to underscore that the Czech Republic will continue seeking allies ahead of the system’s launch.
The mechanics and the risks
Prague is not acting alone. This summer the Czech government circulated a joint non-paper to the European Commission, endorsed by 18 member states, calling for targeted changes to ETS2. While the Czech position leans toward postponement or even abolition, the broader coalition is focused on introducing safeguards to prevent excessive volatility in allowance prices and to shield consumers from sharp cost increases. Fiala used the Brno meeting to underscore that the Czech Republic will continue seeking allies ahead of the system’s launch.
Diverging national positions
The Czech Republic’s stance reflects a wider unease across Central and Eastern Europe. Poland has openly called for a longer delay of up to three years, pointing to the lack of preparation for building renovation and the potential social backlash. Others, such as Germany and France, remain more committed to the timetable but are under pressure domestically to ensure that social cushioning mechanisms, such as the Social Climate Fund, are robust. By highlighting the risks during Costa’s visit, Prague signalled that it intends to shape the negotiations in the months ahead.
What lies ahead
Costa’s tour of EU capitals is aimed at forging consensus within the European Council. In Brno, he encountered a Czech government determined to make ETS2 a political priority. For Fiala, the system in its current form is untenable: it risks eroding competitiveness, raising household costs and fuelling public resistance to climate policy. Whether this campaign results in an outright delay, new price-stability mechanisms or broader revisions will depend on how many member states rally to the Czech side. The debate over ETS2 is therefore set to become one of the defining climate policy battles in the EU over the coming year.
