As expected, the Industry Ministry (IM) wants to increase the CO2 emission limit by 16.4m tons or 18% compared to the recently disclosed proposal by the Environment Ministry (EM). Recall that the EM proposed 94m of emission credits as a countrywide limit, out of which CEZ should receive up to 35m. CEZ however said that anything below 40m could affect is operations. As the IM opposes the EM's proposal, which should be further reviewed by the government in July, the final number of emission credits granted to CEZ will likely exceed the EM's original proposal and should not have a significant impact on CEZ, we believe. The above should be perceived rather as a part of the negotiation/lobbying taking place among some of the involved parties/subjects.
Source: Bloomberg.
Jan Hajek