Czech energy-intensive industries, including steelmakers, have issued another call for policy measures to ensure their survival. These include limiting CO2 emissions certificate price volatility and speculation, reinvesting ETS revenues in decarbonisation and revising climate targets to account for competitiveness, Kallanish notes.
In a joint declaration signed by the Czech and Slovak steel association, Steel Union, industry representatives say a review of ETS and the Market Stability Reserve should be carried out in 2026 to “limit excessive price volatility of allowances and at the same time reduce the scope for purely speculative behaviour on the market”, they note.
The associations are aiming for “more predictable price developments that will continue to create a clear investment incentive for decarbonisation, but at the same time will not cause sudden cost shocks in energy-intensive industries and will not weaken their ability to plan production, modernise operations, and enter into long-term contracts,” they continue.
There should meanwhile be a revision of the ambitious climate targets for 2040 and 2050 “based on an evaluation of progress towards the 2030 target and the real impact of the existing rules on competitiveness, employment, and investment,” they note. “The proposed emission reduction target must be assessed with full knowledge of the impact on industry and infrastructure and must be aligned with the decarbonisation targets of other global players, i.e., China, the US, and India.”
The parties also call for Czech energy prices for industry to be brought below the EU average. Costs for network development and integration of renewable sources should be shared so that there are no sudden price increases. In justifiable cases, part of the system costs can be temporarily covered from public budgets.
“For the most affected sectors, we should introduce temporary, strictly targeted relief or compensation where there is a risk of production cuts and job losses. We should advocate for the creation of a single EU energy market,” they add.
Daniel Tamchyna, president of the Czech Chemical Industry Association, another declaration signatory, says electricity and gas prices should be reduced to €50/MWh and €20/MWh respectively. ETS certificates should then cost no more than €30/tonne.
Moravia Steel chairman Petr Popelar meanwhile said in a social media post that ETS should be revised to reduce the phase out of free allowances and prevent speculators from manipulating prices. EU energy policy must be unified and not left to individual member states as this creates unequal market conditions, he added.
The declaration was made earlier this week before Wednesday’s Antwerp European Industry Summit. On Thursday, EU leaders will meet at Alden Biesen to discuss industrial policy.
