Izmailova: Reform Party populism will cost Estonia hundreds of millions of euros
Social Democratic MP Züleyxa Izmailova criticizes the Reform Party for its stance on the ETS2 emissions trading system, arguing that abolishing it would deprive Estonia of EU support and worsen climate policy.
Züleyxa Izmailova, a member of the Estonian parliament from the Social Democratic Party, has strongly criticized the Reform Party's position on the ETS2 greenhouse gas emissions trading system. She claims the party's populism will cost Estonia hundreds of millions of euros.
Izmailova notes that the Reform Party, once liberal and progressive, is now increasingly copying the populism of conservatives. The party's approach to abolishing ETS2 is based on sowing fear and promising to cancel complex problems instead of solving them.
The ETS2 system was designed to compensate for the risks of climate policy faced by low-income people. According to Izmailova, its abolition would directly threaten these people. She emphasizes that instead of abolishing the system, the government should develop a plan to use EU funds and revenue from quota sales to help people renovate homes, reduce bills, and improve mobility.
Estonia is set to receive €186 million from the ETS2 Social Climate Fund, which could be used for home renovation, heating system upgrades, and energy efficiency improvements. Rejecting this funding would also mean maintaining dependence on fossil fuels, increasing costs in the long run.
Izmailova points out that the current ETS system has already benefited Estonia: from 2021 to 2024, the country gained €800 million more from quota sales than companies spent on purchases. The majority of quota costs were borne by Eesti Energia, and it is in the country's interest to accelerate renewable energy development, not destroy the system.
She criticizes the Reform Party for contradictory policies: first declaring renovation a priority, then wanting to cancel the funding instrument. Prime Minister Kristen Michal, when asked about funding sources if ETS2 is abolished, avoided a concrete answer, saying the money would come from the budget. But the budget is already in deficit, and the national debt has quadrupled in six years.
Social Democrats emphasize that renovation is not only a climate issue but also improves quality of life and regional fairness. The party calls for a flexible support system to help households that cannot afford full renovation.
In conclusion, Izmailova warns that populism and maintaining dependence on fossil fuels will lead to higher costs and dissatisfaction. Estonia needs a responsible government that is not afraid to talk about reducing dependence as a matter of security and well-being.
