President Nikos Christodoulides on Friday says he believes the European Commission “has grasped” the need to suspend the implementation of the EU’s new emissions trading system, known as ETS2, beyond 2028 following lengthy discussions on the matter on the first day of the European Council summit in Brussels on Thursday.
He made reference to the official conclusions of the summit’s first day, which were published in the early hours of Friday morning, saying that “as currently worded … it is satisfactory to us, and I believe the commission has also grasped the importance of allowing or a further postponement”.
Were ETS2 to be implemented as planned, he said, “it would mean … that people and businesses would end up paying at a time when there are so many challenges due to energy costs stemming from a crisis which … no one can say when it will end”.
Cyprus is one of seven countries which has supported suspending the implementation of ETS2, standing alongside Greece, Italy, and the “Visegrad 4” countries – the Czech Republic, Hungary, Poland and Slovakia – in doing so.
The council’s conclusions had seen it call on the commission to “update the assessment of all impacts of ETS2, in particular its design and safeguards”
As such, Czech Prime Minister Andrej Babis, too, stressed his hope of postponing its implementation on Friday morning, and warned EU leaders who support the 2028 deadline that “if you want ETS2 I guarantee you will lose elections”.
Not only that, but he took aim at the existing emissions trading system, now known as ETS1, which has been in force since 2005.
“ETS1 is destroying European industry, while ETS2 will destroy the lives of European citizens,” he said, before lamenting that “we have discussed energy prices repeatedly, but so far it doesn’t look like the European Council realises how serious the situation is”.
This view was not shared by the council’s conclusions, however, which spoke of “the essential role of the ETS in the climate and energy transition through a market-based price signal for carbon emissions that drives investment and innovation”.
ETS2 will see states pay for CO2 emissions of buildings and road transport
ETS2 which the European Commission says will “cover and address the carbon dioxide emissions from fuel combustion in buildings, road transport, and additional sectors”, which it said comprise “mainly small industry not covered by the existing emissions trading system”.
Member states will be required to pay for their greenhouse gas emissions produced by buildings and road transport as well as other sectors, as they currently are for carbon dioxide emitted in energy production and nitrous oxide emissions, which the EU then spends on climate and energy-related investments.
At present, ETS2 is expected to be gradually implemented between this coming January and 2028, but calls for that date to be pushed back have been made throughout this year, with conflicts in the Middle East and in Europe having caused energy costs to rise.
Babis’ opposition to ETS1 is shared by Italian Prime Minister Giorgia Meloni, with the pair having sent a joint letter to the commission earlier this month demanding a “temporary suspension” of the ETS across Europe to stem rising energy costs across the continent.
Fidias Panayiotou Cyprus’ biggest advocate of ETS suspension
In Cyprus, the most high-profile advocate of an all-out suspension of ETS is Direct Democracy Cyprus leader Fidias Panayiotou, who told the European Parliament earlier this month that ETS fees account for 20 per cent of consumer electricity bills.
“Don’t get me wrong, protecting the planet is extremely important, but during this crisis, we must first protect our citizens. I ask the EU to step in and try to fix this problem, made by our government, by giving us an emergency relief,” he said.
To this end, he stressed that “we need to pay less for CO2 emissions during this energy crisis because Cypriot citizens can just not afford it”.
The “problem” to which he was referring is Cyprus’ continued reliance on fossil fuels for energy production.
“The government of my country, Cyprus, has failed its citizens, and now we are paying one of the highest bills for electricity. For years, the Cypriot government has not managed to import natural gas, and it has failed to get enough batteries for renewable energy,” he said.