Austria, Czechia, Hungary, Slovakia, and Poland are pushing the European Commission to relax carbon costs under the EU Emissions Trading System. They argue that high decarbonisation expenses hurt industrial competitiveness and risk pushing production and investment overseas. The appeal came as EU industry ministers discussed the proposed ETS revision, with concerns about carbon leakage and the need for infrastructure like grid capacity and CO2 storage before removing carbon leakage protection. The ETS has reduced emissions by over 50% since 2005 and generated more than €270 billion in revenues, but its future is contested. Industry groups warn that cutting carbon leakage protection too quickly could stall investment in cleaner production. These five governments want more flexibility, such as an 'export discount' or delayed requirements until basic conditions like affordable electricity and hydrogen supply are in place.
