Raisz said the ETS2 was "poorly designed" and "unsuitable" for achieving climate neutrality. As "a bare minimum", the ETS2 rollout should be postponed until 2030, she added.

Raisz acknowledged the need to reform the emissions trading system, adopted in 2005, but said any changes needed to take into account challenges facing European and Hungarian industry.

She blamed the ETS for 20pc of industrial energy costs.

Changes to the ETS should make flexibility and technological neutrality priorities, and the system should be designed for the long term, Raisz said.

Orban supports Polish president’s proposal to reform ETS2

Prime Minister Viktor Orban, in a Thursday letter addressed to the President of Poland Karol Nawrocki, expressed his support for Nawrocki’s proposals aimed at reforming the EU's emissions trading system (ETS2).

Orban agreed that energy-intensive industries played a key role in Europe's economic prosperity and warned that outsourcing production outside the EU would lead to a slowdown in industrialisation, while European consumers would be forced to increasingly buy imported products.

"Deindustrialisation forces European consumers to buy non-European products that do not create jobs and growth in the local economy," Orban said, adding that high energy prices warrant urgent intervention and called for a "fundamental overhaul" of the ETS system.

Orban said he supports, among other things, the introduction of a quota price cap or price band, a crackdown on speculative financial practices, and the expansion of free emission allowances for industry.

He also called for the complete abolishment of ETS2 or at least postponing its introduction until 2030, to allow time for a comprehensive review of regulations.

Orban said he is ready to cooperate with Poland to "protect our citizens from the adverse effects of deindustrialisation and the deterioration of the EU's competitiveness".

Source: MTI – Hungary’s national news agency since 1881. While MTI articles are usually factual, some may contain political bias, and readers should be aware that such content does not reflect the position of XpatLoop, which is neutral and independent.

Since the goal of XpatLoop is to keep readers well briefed, right across the spectrum of opinions, MTI items are shared to ensure readers are aware of all narratives within the local media.

XpatLoop believes in empowering readers to form their own views through complete and comprehensive coverage. To facilitate this XpatLoop has a balanced range of news partners, as you can see when you surf around XpatLoop.com
 

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