Czech environment ministry: Decarbonisation investments to total CZK 3.5 trillion by 2030

Investments in decarbonisation, meaning reductions in the carbon footprint of Czech industry, will amount to approximately 3.5 trillion crowns by 2030. Most of the money is expected to come from private investors, so the state must quickly create a stable investment environment for them. Petr Holub, director general of the Climate Protection Section at the Ministry of the Environment (MŽP), said this at an expert debate on the development of the energy sector in Czechia today. He and other experts agreed that decarbonisation is an irreversible process that will not be halted by any political changes.

State strategic plans, led by the National Energy and Climate Plan (NECP), also envisage investments running into the trillions. According to Holub, private investors are expected to provide around two trillion crowns, with the remainder covered by public support. Holub stressed the need to create a stable environment for investors. Martin Sedlák, programme director at the Modern Energy Union, agreed. In his view, the main problem is not so much a lack of money as legislative barriers holding back the further development of renewable energy sources (RES).

One of the key goals of decarbonisation is to gradually increase the share of renewable energy sources. In last year’s update to the NECP, the state set a target for 2030 of increasing the share from around 19 per cent currently to 30 per cent. The European Commission subsequently recommended raising the share to as much as 33 per cent when assessing the plan.

René Neděla, director general of the Energy and Nuclear Resources Section at the Ministry of Industry and Trade, said today that the key point is the overall trend of the share of renewables increasing. The 30 per cent RES target is a minimum commitment, he said, and does not mean the state will not strive to achieve a higher figure. He also acknowledged that the final version of the NECP could still change.

According to Jiří Koželouh, head of the energy programme at the environmental group Hnutí Duha, it is in Czechia’s interest to increase the share of renewables to as much as 33 per cent. Alongside the environmental benefits, he also pointed to stronger energy self-sufficiency for municipalities and households.

Participants in today’s panel discussion also agreed that greening the Czech economy is an irreversible process that will not be halted by any political changes after the elections. Neděla noted in this context that this is a global trend and Czechia cannot afford to fall behind.

The main strategic document guiding the continuation of decarbonisation in Czechia will be the National Energy and Climate Plan. The document is intended to set out Czechia’s path towards a decarbonised and modern energy sector. Last year’s draft NECP envisaged that growth in the share of renewable energy sources would be driven mainly by solar power and wind power. The plan also confirmed Czechia’s phase-out of coal burning by 2033. The revised plan is expected to be completed by the summer.