Czechia and Poland join efforts to change emission allowances market to bring down rising energy prices

Emission allowances have a 20 to 23 percent effect on the price of electricity, according to Czechia’s PM

editor: REMIX NEWS
author: Sofie Krýžová
Czech Republic's Prime Minister Andrej Babis arrives for a round table meeting at an EU summit in Brussels, Thursday, Oct. 21, 2021. (Yves Herman, Pool Photo via AP)

Due to the rise in electricity and gas prices, Czech Prime Minister Andrej Babiš is calling on the European Commission to reform the emissions trading system along with Poland. The government is also calling for the value added tax (VAT) reduction to continue in 2022.

As Babiš stated, emission allowances have a 20 to 23 percent effect on the price of electricity. Last Wednesday, the value of European emission allowances exceeded €90 per tonne of carbon dioxide. According to estimates, the price could jump up to €100 per tonne by the end of the year.

“The solution would be for the European Commission to cancel the planned withdrawal of 379 million emissions because it mainly affects industrially advanced countries. It is no wonder that Poland wants to withdraw from the system of emission allowances,” Babiš said at a press conference.

According to the Czech prime minister, the EU should change the directive and take into account other than just “favored” countries such as France, which has almost no coal-fired power plants.

The outgoing prime minister also called on the future Czech government to manage the uncontrollable rise of energy prices. The Chamber of Deputies should discuss the reduction of VAT on energy or the Emission Trading Act on Wednesday.

.
tend: 1675492360.4304