The Czech cabinet yesterday agreed to reject both the ETS-2 system of emission allowances, which is designed to regulate carbon dioxide emissions from fuel combustion in buildings and road transport, and the EU migration pact, designed to help EU member states control irregular migration. PM Andrej Babis (ANO) announced both decisions after a meeting of the cabinet of ANO, Freedom and Direct Democracy (SPD) and the Motorists.
“We have unequivocally refused to transpose [ETS-2] into our legal system,” said Babis. “We will come up with very concrete solutions during the European Council summit on 12 February, which is to discuss the competitiveness of the European Union,” he said. The government will ask MEPs to seek allies to reject ETS-2.
Babis did not want to specify the government’s preferred solutions. “We have procedures for that, we want to write letters, we are ready for that,” he said, only noting that the intervention price of an allowance should be at the level of 25 euros.
Martin Kupka, deputy leader of the opposition Civic Democrats (ODS) and former transport minister, told a press conference yesterday that simply rejecting ETS-2 would not actually have any positive impact for the country without concrete alternative steps in place.
“We call on the government to be proactive and to be able to ensure that the impact on Czech citizens is as minimal as possible, bearing in mind that it is not possible to go headlong against the wall as they have shown so far,” said Kupka. The government’s decision, he said, would expose the Czech Republic to sanctions, and Czech citizens and companies would not be able to draw on any potential subsidies.
Senate President Milos Vystrcil (ODS) said the government’s decision on the permits was in line with what the former cabinet had advocated. “It remains to be seen whether the allowances can be completely rejected,” he said. “Unfortunately, this does not depend only on what the Czech government thinks, but it is a broader problem that we must address at EU level.”
The cabinet instructed the ministries of the environment and industry and trade to seek support at the European level for the abolition of ETS-2. It also called on ministers to strengthen protections for households and businesses from high allowance prices if sufficient support cannot be found for a full abolition of the scheme.
Babis said the previous government of Petr Fiala (ODS) had commissioned an analysis of the impact of ETS-2 on the Czech Republic in October. “According to the analysis, at an emission allowance price of 45 euros, the impact on our citizens between 2027 and 2032 would be CZK 154 billion,” said Babis. “If the price of an emission permit is 70 euros, it would be up to CZK 205 billion. This is unacceptable for us.”
The Czech Republic is one of 19 countries that are demanding changes to the system at European level. Babis said he was aware of the initiative, but does not expect that the price of allowances will be capped.
Last week, the EU Council and the European Parliament reached a preliminary agreement on a weakening of EU climate rules, which will include a target to cut greenhouse gas emissions by 90% by 2040, compared to 1990 levels. They also agreed to postpone the introduction of ETS-2 emission allowances by one year, from 2027 to 2028. Babis said earlier that the postponement was far from sufficient, and that his new cabinet would demand a complete withdrawal from the system.
Speaking after yesterday’s cabinet meeting, Babis also said the government would reject the EU migration pact, without giving further details. His government plans to introduce new legislation on migration and asylum in its policy statement..
The migration pact, which was approved last year and will enter into force on 12 June 2026, is intended to lead to better migration management, more effective controls and faster returns of failed asylum seekers. Tighter asylum and migration rules, passed by the previous government of Petr Fiala (ODS) and based on the migration pact, will come into force in January. According to the former coalition, the new rules will speed up the international protection procedure and reduce abuse of the system.
In a resolution made available to CTK, Babis’s cabinet said it rejects the migration quotas in the migration pact, and supports the introduction of a “zero-tolerance policy” for irregular migration to the Czech Republic and the EU.
“The government rejects the EU Migration and Asylum Pact in its current form and will actively push for its tightening,” it said.
Interior Minister Lubomir Metnar (ANO) has been tasked by the cabinet with presenting a proposal for a new legislative framework to control migration, which will involve the rejection of the Czech Republic’s involvement in the EU relocation programme. The Czech Republic is also set to engage actively in EU member states’ efforts to find “real solutions to illegal migration outside the EU, strengthen the protection of the EU’s external borders and fight against smugglers”.
Former Interior Minister Vit Rakusan (STAN) said at Monday’s government handover ceremony that by rejecting the migration pact, the Czech Republic would lose access to tools against illegal migration that neighbouring countries will have.
His successor, Metnar, said the government had an issue with the principle of solidarity, which would see countries struggling with larger numbers of migrants being supported by those which are not. EU states agreed on the establishment of a solidarity fund for next year a week ago; the Czech Republic is exempt from contributions for this period because of the number of refugees from Ukraine who have temporary protection in the country.
