Slovakia’s Fico Urges 5-Year EU Carbon Market Pause

Slovakia’s Fico Urges Suspension of EU Carbon Market, Bratislava’s Bold Challenge to EU Green Policy

Slovakia’s Prime Minister Robert Fico has issued a direct challenge to Brussels’ ambitious climate agenda, calling for a four-to-five-year suspension of the EU Emissions Trading System (ETS) — the bloc’s cornerstone carbon pricing mechanism.

In a letter addressed to European Commission President Ursula von der Leyen, Fico argues that Europe’s industrial backbone is buckling under record energy costs driven, in part, by ETS obligations. He calls for what he describes as a temporary “holiday” from carbon pricing to help “revive strategic industries” and protect European competitiveness.

“We must stop dogmatically insisting on unrealistic climate goals that are destroying strategic European industry,” said Fico.

Why Fico Wants a Carbon Market Pause

Under the EU ETS, companies must buy allowances to cover their greenhouse gas emissions. Designed to cut carbon output, the system also makes energy-intensive operations more expensive — a cost now felt across Europe’s manufacturing sector.

Fico insists that this pressure threatens key industries vital to the EU’s economic future. His government points to Slovakia’s shuttered Slovalco aluminium plant, once one of Europe’s largest and most efficient producers, as evidence of the unintended damage caused by rising energy prices.

The Slovalco Case: “Green Madness”

Located in Žiar nad Hronom, Slovalco halted primary aluminium production in late 2022 after soaring electricity costs made operations unviable. Although backed by Norway’s Norsk Hydro, the plant’s closure eliminated roughly 10% of the EU’s primary aluminium output.

Fico called the closure a symbol of what he terms the EU’s “green madness.” He’s lobbying for ways to reopen Slovalco and believes a temporary suspension of ETS fees could make that possible.

Growing Pushback Across Europe

Fico is not alone. He has joined a coalition of leaders — including those from Hungary, Poland, Italy, the Czech Republic, and Bulgaria — demanding a “more realistic” approach to Europe’s climate transition.

In a joint letter from late 2025, these countries accused the Commission of “ideological dogmatism” and urged Brussels to balance green targets with economic survival.

Key Points of the Debate

Competitiveness at Stake: EU industries face energy costs up to four times higher than global competitors.
Carbon Border Adjustment Mechanism (CBAM): Introduced in 2026 to level the playing field with imported goods, but adds complexity for exporters.
Industrial Exodus Concern: Manufacturers warn of relocating production to Asia or North America if energy costs remain untenable.

ETS Under Review: What Comes Next?

The European Commission is set to review the ETS by mid-2026, with potential reforms already under discussion. While carbon prices remain near €88 per metric ton, pressure from member states could force adjustments.

Industry groups argue that unless the EU lowers energy costs or supports heavy industry, the bloc risks deindustrialization — a scenario that would weaken both jobs and climate goals. Yet environmental advocates warn that pausing the carbon market could undermine Europe’s credibility in global climate leadership.

A Delicate Balancing Act

Europe now faces a pivotal choice:

Double down on climate ambition and risk industrial strain, or
Ease carbon measures temporarily to safeguard strategic industries.

For Brussels, it’s a tightrope between sustainability and survival — and one that could define the EU’s green transition for the next decade.

Final Thoughts

Fico’s proposal underscores a growing divide within the EU over how fast and how far to push climate reform during an uncertain economic period. The debate highlights one key truth: Europe’s path to carbon neutrality must reconcile environmental integrity with industrial resilience.