Czech Republic

The Czech Republic has followed two different approaches to climate change mitigation in the 20 years of its existence. In the first 10 years it focused on implementing the Kyoto Protocol, and it automatically met the targets as a result of its economic restructuring and transition towards a market economy. The accession to the European Union in 2004 mandated the adoption and implementation of European climate policy and targets in compliance with the burden-sharing arrangements necessary to compensate for diverse economic and technological capabilities among the European member states. In both cases, the international commitments are anticipated to be met with the existing measures, given that the Czech Republic’s 2020 GHG emissions without the LULUCF sectors, are projected to be 36.4% below 1990 levels (37.2% with additional measures).

The key climate policy document is the National Programme to Abate Climate Change Impacts in the Czech Republic, formulated in the EU-accession period of 2004 and focusing on the implementation of Kyoto commitments. This Programme will be replaced by the new Climate Protection Policy to 2050, to be developed in 2015. Mitigation and adaptation policy objectives are also included in the State Environmental Policy 2012–2020.

The Burden-Sharing Decision of the EU allows the Czech Republic to increase emissions not covered by the European Emission Trading Scheme by 9% by 2020 compared to 2005 levels. In fact, emissions were reduced by around 0.9% between 2005 and 2012 and the target is expected to be reached without requiring additional measures.

The regions play an important role in implementing national climate initiatives. They have to develop regional development plans that include the management of natural resources affected by climate change such as water management for rivers, flood prevention measures, the development of renewable energies and improvement of energy efficiency.

Energy supply

The Czech Republic has a 2020 target for 13% of its energy to come from renewable sources. The share of renewables in final energy consumption was 11.2% in 2012. The uptake of renewables was supported with a feed-in tariff and a green bonus for renewable power. Plant operators could choose payments based on the feed-in tariff or a bonus on the market price for renewable electricity. In 2013 the feed-in tariff mechanism, as well as the green bonus, were reduced.

Eligibility for the feed-in tariff has been limited to operators of plants with an installed capacity of less than 100kW and the tariff rates are based on a 15-year return on investment. The Ministry of Industry and Trade selects obligatory purchasers from available licence holders for electricity trading. A solar tax was adopted in January 2011, aiming to slow down the uptake of solar/PV projects. Initially equal to 26% of the feed-in tariff for operators of new installations in operation after 1 January 2009 (exception of rooftop installations up to 30kW), it has been reduced to 10% of the feed-in tariff or 11% of the green bonus received starting January 2014 and limited to installations commissioned between January-December 2010. Since 1 January 2014 new renewable energy sources are not supported by feed-in tariff or the green bonus, except installations granted permits before October 2013 and in operation by the end of 2015, small hydropower installations (<10 MW), and – during the transition period January–December 2014 – wind, geothermal and biomass facilities.

In addition, as part of the path to a low-carbon economy, policies supporting the uptake of renewable energies and emission cuts in non-energy sectors are complemented by support for nuclear power. According to the draft of the new Energy policy, the share of nuclear energy is expected to increase from 35% in the national electricity mix to 50% by 2040, while the share from solid fuels is expected to drop from 50% to 12-17%.

Energy demand

The increase in energy demand in the building sector has been met with stricter standards for energy efficiency in buildings in the form of an amendment to the Energy Management Act (approved by Parliament in September 2012). Construction and major reconstruction permits are conditional upon compliance with the Energy Management Act and require an Energy Performance Certificate issued by an authorised energy expert. Subsidies are available to improve insulation in residential and municipal buildings and replacement of fossil fuel-based heating systems via the Green Savings Programme from 2009 to 2012, where the equivalent of USD2bn was disbursed to more than 70,000 project participants.

This original programme has been followed by the New Green Savings Programme 2013 and the New Green Savings Programme 2014-2020, managed by the State Environmental Fund of the Czech Republic. The 2014-2020 Programme offers financial support covering up to 55% of expenses for energy efficiency improvement through renovation of family houses, and up to CZK550,000 (USD24,884) for construction of new family houses with close-to-zero energy consumption. Additional resources have come from the Cohesion Fund, the Czech state budget, fees from polluters and the European Regional Development Fund to help fund energy savings and RES support. In addition, the State Environmental Fund provides financial resources to fund research and development activities to reduce GHG emissions from energy consumption. Recently such research has been supported by the Technology Agency of the Czech Republic.

Carbon pricing

The EU ETS is the Czech Republic’s major carbon pricing initiative. The corresponding EU-level legislation has been implemented. Since 1^st January 2015, the revenues from the EU Allowances auctions are to be devoted to climate-related programmes. The Czech Republic also implemented the EU directive on taxation of energy products and electricity including taxation of gas, electricity and solid fuels that took effect in 2008. It has funded the Green Savings Programme from the sales of Assigned Amount Units – AAUs under the Kyoto Protocol. In total, between 2009 and 2013 the Czech Republic sold 103,672,000 AAUs and revenue from these sales amounts to almost CZK20.5bn (USD927m). 

REDD+ and LULUCF

The Czech Republic participates in international efforts to integrate climate and forest management objectives into assistance for economic development in developing countries within the European Union efforts. Domestically, there are provisions for land-use planning to reduce the impacts of extreme meteorological situations, erosion and floods and in agro-environmental measures under the Common Agricultural Policy and government regulations. These measures include greening measures such as grassing over of cropland and sloped land or organic farming.

Transportation

Emissions from transportation increased substantially between 1990 and 2012, rising 15.8% as a result of economic development and the third lowest taxation of transportation in the EU. Emissions from transportation are primarily addressed via the National Action Plan for Energy from Renewable Sources that confirms the EU target of at least 10% share of renewable energy in transportation by 2020 and the Clean Air Act, which mandates a 4.1% of biofuels in gasoline and 6% in diesel.

Adaptation

A new adaptation strategy is in preparation and should be presented to the government in 2015. It focuses on agriculture, forestry, water management, biodiversity, urban planning, risk prevention and management, tourism, energy and transport. However, many sectoral strategies partially deal with adaptation – Flood Protection Strategy, Soil Protection Strategy, National Forestry Programme II, Biodiversity Strategy, Civil Protection Strategy, etc. Adaptation is also one of the most important topics of the State Environmental Policy (2012 – 2020).

Water management is projected to be the most vulnerable sector and is a key adaptation element in response to extreme meteorological and hydrological situations causing draughts or floods. The River Basin Management Plans present important policy measures and focuses on management of precipitation water. The flood risk management plans as well as flood risk maps are currently in preparation. The implementation of adaptation measures is carried out mainly by regions and/or municipal governments. Measures supported via the Landscape programme and Programme for Renewal of the Natural Function of the Landscape have a special focus on nature and landscape protection and are financed through national resources. The Operational Programme Environment and the Rural Development Programme (both supported through EU funds) should continue to finance adaptation activities and measures in the next financial period (2014 – 2020).