{"id":273467,"date":"2025-08-26T17:23:28","date_gmt":"2025-08-26T07:23:28","guid":{"rendered":"https:\/\/www.railfreight.com\/?p=65348"},"modified":"2025-08-26T17:23:28","modified_gmt":"2025-08-26T07:23:28","slug":"czechia-exempts-rail-freight-from-ets-2","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=273467","title":{"rendered":"Czechia exempts rail freight from ETS-2"},"content":{"rendered":"

The Czech Ministry of Transport has exempted rail freight from the upcoming EU Emissions Trading System 2. In other words, there will be no carbon emission allowances for the rail freight sector in Czechia.<\/strong>
\n<\/span>The decision prevents an additional cost burden for the rail freight sector. Under ETS-2, targeted sectors would need to secure their emission rights from 2027 by participating in auctions. That includes the construction sector, road transport and small industry not covered by the existing ETS.<\/p>\n

Besides those sectors, EU member states can choose to extend the ETS-2 obligation to other sectors as well. Czechia has decided to exempt rail freight, but there is no guarantee that other countries will follow suit. For example, the Netherlands has decided to include as many sectors as possible to reduce the administrative burden and risk of fraud. Dutch rail freight will therefore be subject to ETS-2.<\/p>\n

An important signal<\/h2>\n

Despite the risks of exemptions, a lower cost burden for rail freight will, of course, be celebrated by the sector. Illustratively, METRANS CEO Peter Kiss wrote on LinkedIn that the rail freight exemption for ETS-2 is an \u201cimportant signal\u201d.<\/p>\n

\u201cElectric traction is already the most efficient and sustainable mode of transport. Adding a carbon cost here would have penalised the very sector that has been delivering the strongest environmental benefits for years\u201d, Kiss commented.<\/p>\n

ETS-2: “mere taxation” for rail freight<\/h2>\n

In 2024, chairman of the Board of Directors of Czech national freight operator \u010cD Cargo, Tom\u00e1\u0161 T\u00f3th, explained to RailFreight.com that ETS-2 can only raise the costs of rail freight without providing much environmental benefit. That is because on non-electrified lines, any environmental benefit would come from using battery-powered or hydrogen-powered locomotives.<\/p>\n

However, that technology is not quite there yet. \u201cBattery and hydrogen locomotives are only available as prototypes in the form of light shunting locomotives. The technologies are not yet elaborated to such a degree that they could substitute existing diesel locomotives”, T\u00f3th said.<\/p>\n

\u201cThe introduction of ETS-2 in railway transport would, therefore, only make it more expensive. Without the existence of adequate mainline locomotives of independent traction that will be able to use alternative propulsion, any motivating factor of emission allowances disappears\u201d, T\u00f3th explained. ETS-2 would then simply amount to \u201cmere taxation\u201d.<\/p>\n