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| Ten countries called for maintaining free emissions allowances before the summit |
| Brusel, 20.03.2026 |
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| A group of ten European Union member states, including Slovakia, have asked the European Commission (EC) to continue granting industry free emission allowances through the Emissions Trading System (ETS) in order to reduce energy costs, which have been rising sharply since the outbreak of the conflict between the US, Israel and Iran. The TASR correspondent drew attention to the Reuters news agency report.
EU member state leaders are also expected to discuss proposals calling for changes to emissions trading at the regular March meeting of the European Council, which began on Thursday morning, in an effort to limit the sharp rise in energy prices.
Reuters recalled that Polish Prime Minister Donald Tusk confirmed at a recent energy conference in Gdansk that Poland was one of the signatory countries that sent a letter to European Council President Antonio Costa and European Commission President Ursula von der Leyen on Wednesday (March 18) requesting that industry continue to benefit from free emission allowances. This is intended to help businesses mitigate carbon costs.
Ten countries, namely Bulgaria, the Czech Republic, Greece, Croatia, Hungary, Poland, Austria, Romania, Slovakia and Italy, signed the letter to Costa and Leyen.
“We believe that a thorough review of the ETS is needed to mitigate its impact on electricity prices and reduce the risk of carbon price volatility, including extending the EU’s free allowances under ETS 1 beyond 2034,” the letter says, referring to the emissions trading system. The signatories of the letter see it as necessary to allow for the phasing out of free allowances only from 2028 (not 2026) to avoid an excessive burden on industry during the transition period.
Reuters says the European Commission has confirmed receipt of the letter.
Launched in 2005, the ETS is designed to meet the EU’s 2030 emissions reduction target. The ETS requires power plants and industries to buy pollution allowances to cover their CO2 emissions, but energy-intensive industries can get some allowances for free.
EU countries are preparing to overhaul the emissions trading system, which aims to lower energy prices and ensure that allowances do not act as a barrier to industrial development.
Tusk said he would urge the EU to tailor its approach to climate policy to the specific needs of individual member states. Poland, which uses coal for about half of its electricity generation, is particularly reliant on free allowances through the ETS to limit costs for domestic businesses.
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