Hungary and Italy have joined the Czech Republic in its campaign to shield heavy manufacturing from soaring carbon emissions expenses, Industry and Trade Minister Karel Havlicek announced in Brussels.
The two nations joined five other states alongside Czechia in signing a joint position paper. The document demands that the European Union maintain its current volume of free emission allowances, which grant industrial firms the right to release greenhouse gases under the EU Emissions Trading System (EU ETS). Havlicek emphasised that energy-intensive sectors—specifically glass manufacturing, steel production, chemical refining, cement processing, and foundries—require significantly higher levels of state and regulatory backing.
A broader coalition is simultaneously expanding to include France and Spain. While their separate position paper approaches the issue from a slightly different perspective, Havlicek noted that their goals align with Czech interests, bringing the total number of allied countries aware of the industrial risk to 10.
Czechia remains a primary critic of the current EU ETS framework. Following a recent EU summit, Prime Minister Andrej Babis confirmed the country will continue lobbying to exempt energy-intensive manufacturers from the allowance system entirely until 2034. The European Commission is scheduled to unveil its official EU ETS revision proposal on July 15.
Sources indicate that the Commission's upcoming revision will aim to channel allowance revenues back into corporate investments and green innovation. While Brussels intends to offer additional free allowances, the allocation will likely be strictly tied to mandatory corporate decarbonisation plans. Havlicek stated that this conditional framework would be acceptable to the Czech Republic, noting that while greening industry is necessary, it must not be forced through rigid, directive policies.
