Czech Environment Ministry: CZK 29 billion from EU fund to go towards decarbonising coal regions

Almost CZK 29 billion from the Just Transition subsidy programme is earmarked for decarbonising coal regions, meaning the transformation of the Karlovy Vary, Ústí nad Labem and Moravian-Silesian regions. That is more than 70 percent of the programme’s total allocation, and six billion crowns has already been paid out to beneficiaries. According to Environment Minister Petr Hladík (KDU-ČSL), Czechia is among the EU member states most successful at drawing money from the Just Transition Fund. He said this at a press conference today. The programme is intended to support the transformation of regions associated with long-term coal mining.

"In absolute figures, the Czech Republic is the most successful country in the EU-27 at drawing funds from the Just Transition Fund," Hladík said.

The programme supports a wide range of areas, from business development, research and innovation to land restoration and clean energy, as well as education and social stability. The largest share of funding goes to projects focused on supporting people and their skills, restoring land after coal mining, and research.

Funding will be provided for 22 of the 34 strategic projects that applied for support. Most of the money is going to the academic and public sectors, with the private sector accounting for the smallest share. The successful projects applied for support on time and in proper form, and met the requirements. According to the ministry, important projects include the Spa Research Centre in the Karlovy Vary Region and the Ústí nad Labem Region Transformation Centre.

"We have moved from announcing calls and receiving applications to launching project implementation and funding. In the Moravian-Silesian Region, we will support nine projects worth CZK 10.3 billion; in the Ústí nad Labem Region, seven projects worth CZK 5.3 billion; and in the Karlovy Vary Region, a total of six projects worth CZK 2.9 billion," said Jan Kříž, senior director of the Environment Ministry’s environmental economics section.

Expected results include support for 1700 businesses, for example by helping them introduce new technologies; assistance with retraining 7000 employees; the reclamation of 53 hectares of land; the creation of 450 new research jobs; high-quality learning spaces for 39.000 pupils and students; and an increase of 29.000 tonnes in the amount of recycled waste.

The Just Transition Operational Programme is funded by the European Just Transition Fund. Its money is allocated to regions facing the transformation of regional economies that have long been linked to coal mining. A total of CZK 41 billion has been earmarked for the regions mentioned above for the 2021–2027 period. Applicants may include local authorities, subsidised organisations, businesses, state-owned enterprises, public-law entities and educational institutions.

The programme supports strategic projects—complex projects with a transformative impact on individual regions. It can also support thematic calls and group projects focused on smaller-scale projects.

According to Hladík, Czechia is seeking to ensure within the European Union that support through the Just Transition continues in the new programming period starting in 2028.