PM Babiš calls for free emissions allowances to support industry

Czech Prime Minister Andrej Babiš (ANO) has urged the EU to grant additional free emissions allowances to industries most affected by the ETS 1 system. In a letter sent to European leaders, he argued the measure would help maintain the bloc’s competitiveness while supporting decarbonisation. Babiš proposed that companies receive free allowances on condition they commit to reducing emissions. The European Commission, led by Ursula von der Leyen, is already considering adjustments to the system to improve stability. The EU’s emissions trading scheme is designed to cut carbon output by making pollution more costly, but critics say it puts heavy pressure on energy-intensive sectors.