Six sector-specific ideas for Czechia’s green transition
November 5, 2021
Climate & Company, Czech Technical University in Prague, Agora Energiewende and Eclareon Consulting have conducted a study to develop concrete recommendations on how Czechia can better harness opportunities in the EU budget in 6 key economic sectors (buildings, district heating, energy, transport, grids, and industry) and implement transformative investments and policy reforms to increase its contribution to the EU climate goals.
Shortcomings on green spending and financial allocation in key Czech programs and policy documents
This is the launch of the study “Six-sector specific recommendations for Czechia’s Green Transition”providing ideas on how to quickly absorb financial resources and get back on track to meet the EU 2030 energy and climate targets. Indeed, the research highlights shortcomings on green spending and financial allocation in key Czech programs and policy documents, including Czechia’s ‘Recovery and Resilience Plan’ and the ‘National Energy and Climate Plan’. This is why 6 sector-specific recommendations were developed to target green investments and policy reforms to overcome investment challenges – exemplifying that a green transition for Czechia is possible. The analysis shows how a maximum amount of financial resources can be allocated to ensure that Czechia reaches the set EU 2030 targets.
Find the flagships (sector-specific recommendations) below. We also prepared a slide deck introducing the project as well as the state of play of the green transition in Czechia. For each of the flagships, a comprehensive slide deck underlying rationale, investment barriers and needs, GHG reduction potential, policy reforms, the role of public and private sector, as well as finance instruments and sources. To develop each of the flagships, the research team consulted with a variety of stakeholders, both at Czech and EU level.
Europe’s economic recovery from the COVID-19 pandemic can only be a green one, as the European Union’s revised 2030 climate targets imply that greenhouse gas emissions will have to decrease sharply. Now is the time to accelerate renewables investments, energy efficiency renovations and launch the clean industry transition.
The Next Generation EU (NGEU) and programmes under the 2021-2027 EU Multiannual Financial Framework (MFF) will support recovery post-COVID-19 in Europe with €1.8 trillion in funding. This means a record amount of public funding is available to Member States like Czechia, but the clean transition investment needs in are much bigger. Despite its historic size, EU funds alone are not sufficient to meet the overall investment needs of the newly raised 2030 climate and energy targets. The instruments under the Next Generation EU and the Multiannual Financial Framework need to be smartly combined with national funding and effectively designed to crowd in private funding in order to deliver a green recovery.
In a first phase of the project “Financing the EU’s Green Recovery”, Agora Energiewende and Climate & Company prepared an explanatory guide on the EU funding landscape: “Matching money with green ideas – A guide to the 2021–2027 EU budget”, to assist clean transition stakeholders in identifying suitable EU funding opportunities and putting forward investment ideas, while also informing national green financing and structural reform debates.
But how exactly can EU Member States like Czechia make optimal use of the record amount of public financial support to finance opportunities for an economic recovery consistent with the EU’s increased 2030 climate ambition? Agora Energiewende teamed up with Sustainable Finance Think Tank Climate & Company on the project “Financing the EU’s Green Recovery” to specifically address these gaps and advise EU Member States on the best way forward.