Italy and Czech Republic to call for softer EU rules on carbon permits, energy supply

Italy, Czech Republic Seek Softer EU Rules on Carbon Permits and Energy Supply

Joint Proposals to Address Energy Costs and EU Carbon Market

Leaders' Meeting and Reform Package

ROME, Sept 29 (Reuters) - Italian Prime Minister Giorgia Meloni and her Czech counterpart Andrej Babiš will agree joint proposals to curb energy costs and overhaul the European Union's carbon market, officials from Rome said ahead of their meeting on Tuesday.

The two leaders aim to present the reform package at the October 15-16 EU summit, the Italian officials said.

Focus on EU Rules and Emissions Trading System

Meloni and Babiš are focusing on easing European Union rules that could trigger energy supply disruptions while also reforming the EU Emissions Trading System (ETS), a regulation forcing power plants and industries to buy CO2 permits when they pollute.

Temporary Suspension of Methane Regulation

As part of the package, Rome and Prague are calling on the EU to temporarily suspend a regulation on methane which, according to the officials, could make it more difficult to rely on alternative gas suppliers from January, potentially increasing energy costs and threatening security of supply.

Postponement of ETS2 Regulation

The two governments also want the EU to postpone ETS2 regulation, currently scheduled to come into force in 2028, arguing it could further increase energy costs in some sectors including road transport and housing.

Reporting Credits

(Reporting by Giuseppe Fonte; Editing by Alvise Armellini and Kirsten Donovan)