Slovakia, as the first country of the European Union, decided to argue the fresh ETS 2 system, including emissions from road transport and building heating. Although associate States have until 25 September 2024 to implement this directive, the government in Bratislava has already taken steps to reject it. The Minister of the Environment of Slovakia, Tomáš Taraba, called on Brussels to amend the directive, which could put the country on a collision course with the European Union.
What is ETS 2 and why is it controversial?
ETS 2 is the improvement of the European Emissions Trading strategy (ETS), which originally included high-carbon sectors specified as dense manufacture and energy. Under the fresh rules, from 2027 this strategy is besides intended to cover emissions related to road transport and building heating. This solution is part of the European Union's strategy to accomplish climate neutrality by 2050.
However, the introduction of ETS 2 besides means an increase in household costs, which has caused concern in many countries, including Poland and Slovakia. Higher emissions charges can translate into an increase in fuel prices, heating and hence an increase in the cost of living.
Slovakia as First Rebel
Slovakia's decision not to implement ETS 2 is the consequence of concerns about increased costs for residents. Minister Tomáš Taraba stated that his country would not agree to increases in heating and fuel prices, which would consequence from fresh regulations. He besides called on another EU countries to consider the financial implications of ETS 2 and to negociate with the European Commission on this issue.
Bratislava has until September 25 to change its decision, but for now it seems that the Slovak government is determined to resist. This is the first case of open opposition to ETS 2, which may lead to difficulties in further negotiations in the EU.
Will Poland follow Slovakia?
Poland, like Slovakia, faces a immense challenge in implementing ETS 2. This strategy can bring considerable financial burdens on households, which is the subject of intense political debate in our country. Although the Polish government has not yet issued an authoritative position on Slovakia's resistance, there is no shortage of voices critical of ETS 2 among Polish politicians.
Member of the 3rd Way, Sławomir Ćwik, warns that opposition to ETS 2 may lead to unforeseen political consequences. He pointed out that Slovakia's denunciation of ETS 2 could be taken as a first step towards exiting the European Union. “A single rejection of European law can consequence in serious repercussions for the country’s economy,” he notes.
What's next? A possible coalition of states against ETS 2?
Slovakia's decision may signal another countries that are besides under force to introduce ETS 2. Will Bratislava find allies among the countries most affected by these regulations? It is worth noting that there are inactive a fewer years left to implement ETS 2 and many countries may not be ready to rise energy and fuel prices.
In July 2024, the European Commission sent formal reminders to 26 associate States, reminding them of the work to implement ETS Directive 2. However, Slovakia's consequence may indicate that not all countries are ready for these changes. Bratislava may effort to build a coalition of countries against ETS 2, which would open the way for further negotiations with Brussels.
Should Poland fear ETS 2?
The ETS 2 is undoubtedly a challenge for both the economy and citizens' portfolios. Poland, 1 of the biggest issuers in the European Union, faces a hard task of adapting its infrastructure to fresh regulations. The strategy will force Polish households to invest in ecological solutions, specified as thermomodernisation of buildings or transition to more ecological heat sources.
However, the question raised by Polish experts and politicians is: Is ETS 2 a essential step towards combating the climate crisis, or can it put besides much force on the population? Much depends on how negotiations will take place in the EU in the coming months.
Read more:
The first country says NO ETS 2 – Slovakia raises a dispute with the EU. What does this mean for Poland?
