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[BUSINESS] · Czechia, EU · 2 sources

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ETS 2 emission system to impact fossil fuel prices from 2028

The ETS 2 emission allowance system, set to affect heating and transport starting in 2028, is expected to influence the prices of fossil fuels. Rather than a direct tax paid by households to the state, the costs will be borne by regulated entities supplying fossil fuels to the market. These entities must purchase emission allowances, the costs of which may be passed on to consumers through higher prices for gas, gasoline, and diesel.

Electricity is not included in the ETS 2 scope. While the exact impact on household costs remains uncertain due to fluctuating energy prices and allowance values, the European Parliament has established a mechanism to mitigate price pressure if CO2 allowances exceed 45 euros per ton. For illustration, at that price point, the carbon cost could represent approximately 2.5 to 3 CZK per liter of fuel.

Entities

European Parliament · Viktor Procházka · Yello