Italy and Czech Republic seek relief from EU carbon rules for industry
A joint letter proposes extending free carbon allowances and pausing their withdrawal for sectors covered by the EU’s carbon border tax.
Italy and the Czech Republic are pressing for changes to EU climate rules, warning in a joint letter that energy and carbon costs threaten lasting harm to manufacturing. Their proposals come ahead of an EU leaders’ meeting on 15 October, where industrial competitiveness is expected to be a prominent topic.
The two governments want heavy industry to receive free allowances for longer under the EU’s Emissions Trading System (ETS). They also propose halting the gradual withdrawal of free allocations from sectors covered by the EU’s carbon border tax.
The letter argues that temporarily suspending the ETS would immediately reduce industry’s carbon costs. If that option lacks sufficient backing, it suggests more targeted measures that the European Council could support. Rome and Prague describe their proposals as temporary and say they would maintain longer-term climate goals.
The governments warn that expensive energy, carbon charges and exceptional fuel prices could weaken manufacturing further and drive production and investment elsewhere. They are seeking allies within the European Council, with methane rules also among their targets.
Italian Prime Minister Giorgia Meloni met Czech Prime Minister Andrej Babiš in Prague to coordinate their approach before the summit. Italian Defence Minister Guido Crosetto has separately argued for suspending the ETS until economic conditions improve.
