Petr Popelar, chairman of Czech Republic-based Moravia Steel, has stated that the company will face a reduction in free emission allowance allocations for the first time this year, increasing cost pressures on the Czech steel industry.
According to Popelar, rising costs, stricter environmental obligations requiring significant investment, and persistently high energy prices are putting heavy strain on steelmakers. He emphasized that the company is prepared to undertake extensive greening and decarbonization of its production processes, but warned that the market environment must improve to ensure the long-term viability and development of the Czech steel sector.
Calls for ETS reform and unified energy policy
Popelar called for a reassessment of the European Green Deal targets, arguing that initial policies were driven more by ideology than by economic realities. He also urged a review of the EU ETS emission allowance system, saying that the sharp decline in free allocations should be moderated and that financial speculators should be prevented from influencing carbon prices.
In addition, he advocated for a unified European energy policy rather than leaving key decisions to individual national governments, as this creates unequal competitive conditions across the EU. Stressing the strategic importance of the sector, Popelar concluded that Europe must preserve its steel industry, noting that steel is essential for defense, sovereignty and industrial independence, and that reliance on imports would weaken Europe’s ability to shape its own future.
