Slovak Prime Minister Robert Fico has intensified criticism of the EU’s carbon pricing framework, urging the European Commission to suspend parts of the Emissions Trading System as pressure mounts over high energy costs and industrial competitiveness.

Slovak and international media report that Fico raised the issue directly with Commission President Ursula von der Leyen, framing carbon pricing as a structural burden on Central European industry.

The intervention comes as EU Allowance prices remain a focal point for policymakers and market participants. The ETS, which covers power generation, heavy industry and aviation, is the cornerstone of Europe’s climate policy and the world’s largest carbon market. Recent reforms under the Fit for 55 package tightened the emissions cap and expanded coverage, reinforcing price signals but also increasing cost exposure for energy intensive sectors.

Fico has argued that the pace of decarbonisation, combined with geopolitical shocks and weak demand, risks undermining Europe’s manufacturing base. Slovak outlets have reported proposals for a temporary pause or relief mechanism within the ETS, echoing similar concerns voiced by politicians in other member states ahead of the next European Commission mandate.

And from a market perspective, any political push to alter the ETS would have implications beyond Slovakia. Analysts note that policy uncertainty can affect allowance price expectations, investment decisions and the credibility of the EU’s long term emissions trajectory.

The criticism is in line with the geopoitical stance Fico has taken, opposing European initiatives to support Ukraine and an energy transition to renewables.

The EU ETS is the largest systems of its kind, while globally carbon pricing remains fragmented. North America operates a patchwork of regional systems, including California’s cap and trade market and the RGGI program in the northeastern US, while China continues to expand its national ETS, currently focused on the power sector. Together, these markets underscore the growing but uneven role of carbon pricing in the global transition.

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