"It is good that Europe has found its way to a strong agreement that will prevent the drastic effects of climate change.

At the same time, we managed to negotiate over CZK 1,200 billion for Czech industry and households for the just transition of the Czech Republic towards a low-emission economy. This means that we will have enough funds for investment and modernization, but also for help for the most vulnerable groups of the population," comments The Minister of the Environment Anna Hubáčková (for the KDU-ČSL). The Environment Council held a meeting for more than 16 hours on Tuesday, June 28, on a package of five Fit for 55 proposals. The first area is the revision of the Emissions Trading System (EU ETS), where the Czech Republic co-negotiated an insurance policy that the prices of allowances will not skyrocket, as has happened in recent months and years. Thanks to the agreement, a mechanism will be in place to respond to current price developments and, if necessary, to release additional allowances on the market. European ministers also approved the creation of a separate emissions trading scheme for the housing and road transport sectors, the phasing out of free allowances for aviation or changes to maritime charging. The package also includes an adjustment of the national emission reduction targets for non-EU ETS (ESR) sectors, in the case of the Czech Republic with a target of 26% for 2030 compared to 2005. How this objective is achieved is up to the individual Member States. The Council also approved its position on changes in the contribution of the land use, land use change and forestry (LULUCF) sector. An important part of Fit for 55 is compensation to mitigate the effects of a possible rise in energy prices, especially on vulnerable households. The Environment Council approved the creation of a new Social Climate Fund. It will become an essential tool for individual countries to mitigate the effects of rising prices in housing and transport, especially on low-income households, which spend relatively more of their budgets on energy. Thanks to the fund, the Czech Republic will have CZK 35 billion at its disposal, which we can use for investments and direct support for those most in need. The debate on CO emission standards for new passenger cars and light commercial vehicles was also very complex. The negotiated compromise agreement on a gradual phase-out of cars with internal combustion engines by 2035 also includes a requirement to evaluate the achievability of the targets in 2026. This means that the European Commission will have to look again at whether the common objectives are achievable, also in the light of technological progress and social impacts. At the same time, the approved agreement opens up the possibility of selling – as an alternative to electric cars – cars with internal combustion engines, provided that they can use climate-neutral fuels. The adoption of a common position on these five regulations completes the process of establishing the position of the Member States on the entire Fit for 55 package and the Czech EU Presidency will now seek agreement on the final form of the regulations with the European Parliament. The Environment Council also approved the position of the Member States on the proposal for a regulation against deforestation. During the Czech Presidency, negotiations with the European Parliament on the compromise text will thus begin. During the afternoon meeting, Minister Anna Hubáčková presented the agenda and priorities of the Czech Presidency in the field of the environment. The outgoing French Presidency then solemnly handed over the leadership of the Environment Council to the Czech side. Source: Ministry of the Environment