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According to the International Energy Agency, the Czech Republic needs to prepare to phase out coal earlier than currently planned, and develop low-carbon energy sources to replace it. Studies are showing that the country is diverging from the European trend, while EU wants to meet the climate targets by 2030, the Czech Republic is heading in the wrong direction on emissions. One of the main reasons is that Czech Republic’s economy is still dependent on coal which accounts for almost half of the national power generation and a quarter of its residential heating demand. This situation is likely to urge policymakers and businesses to speed up the green transition and they might represent an economic threat for the high-coal-depended sector and opportunities to implement new others sources of electricity and heath.

The legal and regulatory framework


With the pressure of the new European Union energy and climate policies, the Czech government should “start making better use of the various low-carbon energy sources that can help it transition in a secure way to a cleaner energy system and power its economy for decades to come”. These words from Faith Birol, the IEA’s Executive director, are precious advice to avoid late and expensive decisions. As the introduction of the European Green Deal and the “fit for 55” will raise the price for CO2 emissions and as a result will make coal less attractive. The Czech Republic has already improved its environmental legislation to attract new low-carbon alternatives, however, there is still a lot to do.

The final recommendation that IEA gave is to make better use of carbon price signals and to encourage the use of less carbon-intensive fuels while following the example of other IEA countries. This will urge further regulation to renovate the energy sources.

What this will mean for businesses?


It is difficult to anticipate the future but we expect that new regulations will shift market behavior. This will mean that for business that depends on coal, the price for their energy will raise in the near future, and now it is time to develop a strategy focused on a more sustainable source of energy. On the other side, the environmental backwardness of this country represents an opportunity for businesses to invest in renewable solutions, which could help the country to realign whit the EU emission target.

References: Brno Daily and

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