Caspian Energy (CE): What are your ministry’s key priorities for boosting industrial growth and innovation in Czechia?
Petr Hladík, Minister for the Environment of the Czech Republic: The Czech green modernization creates opportunities for everyone, and it is important that we make the most of them. It will have a positive impact on both the quality of life of our citizens and the state of the environment. It will also bring many new and much-needed opportunities for business and industry. Czech companies, of course, need green energy from renewable sources, and if there is not enough of it domestically, they will buy it abroad. We need to modernize Czech industry, energy and heating systems in a pragmatic way.
Green modernization offers opportunities to companies and Czech industry. It enables them to keep up with the competition and expand into foreign markets. Businesses can develop innovations and modernize their operations, and several programmes support the research and development of new technologies to help kick-start businesses. Investment in energy efficiency and savings is needed, as is the gradual replacement of fossil fuels with renewable energy sources.
The Ministry of the Environment supports the smart transformation of the Czech energy sector, with a particular focus on decarbonization, decentralization, digitalization, and democratization. We promote the development of renewable energy sources (RES), including small, decentralized installations, as well as energy communities and the concept of active customers. The concept of an active customer is centered on communities, households, or companies that share produced electricity through a public transmission grid. These developments present significant opportunities for the industrial sector in the production of modern energy technologies.
More broadly, we support reducing energy intensity in industry and changing the energy carriers used to more environmentally friendly ones, such as hydrogen applications and the electrification of industrial processes. We also aim to promote the use of waste heat with various potential applications in industry.
CE: How is the Czech Republic addressing the challenges of climate change and its impact on biodiversity?
Petr Hladík: Biodiversity and climate change are intrinsically linked, which is now widely recognized. Nature-based solutions often combine protection of biodiversity, adaptation to climate change, and enhanced sequestration of carbon. The Ministry of Environment promotes such solutions in its programmes focused on landscape restoration and protection, as well as improving water retention. Adaptation and improved management of forests are key to both enhancing natural carbon sinks and protecting biodiversity. We are also supporting research on the interconnections between biodiversity and climate change.
We are currently finalizing a new Landscape Policy and preparing our nature restoration plan in line with the Nature Restoration Law which should further strengthen the links between biodiversity and climate change in the Czech Republic.
CE: What role does the circular economy play in your current environmental strategy?
Petr Hladík: The circular economy is a top environmental priority for the Czech Republic, and we have taken important steps towards it in recent years. Key legislative measures adopted include ambitious recycling targets, a ban on landfilling recyclable and recoverable waste by 2030, higher landfill fees, a ban on certain plastic products, and the introduction of various extended producer responsibility (EPR) systems. We have also adopted an overarching National Strategic Framework for the Circular Economy – Circular Czechia 2040, and we provide substantial financial support for circular initiatives.
The Circular Czechia 2040 strategic framework was adopted by the Czech government in December 2021 as part of reforms introduced under the Czech Recovery and Resilience Plan. The implementing Action Plan for 2022–2027 was adopted in June 2023. Its main purpose is to specify the measures to be rolled out by 2027 to achieve the strategic goals of Circular Czechia 2040.
We have recently completed a new National Waste Management Plan for the period 2025–2035. This plan will provide even greater support for waste prevention, recycling, and energy recovery. Conversely, the amount of waste sent to landfill will be substantially reduced soon.
It is necessary to support a consistent transition to a circular economy that ensures a higher level of use of secondary raw materials, supports innovative recycling technologies, and improves our raw material security. This transition can be facilitated by greater use of economic instruments and incentives for the sectors concerned. Economic and financial instruments are key elements that can enable pro-growth measures, greater flexibility, and business development, thereby significantly accelerating the transition to a circular economy. We can develop this, for example, through rapid access to sources of development finance, stronger involvement of the European Investment Bank, and the provision of incentives, credits, financial guarantees, and loans.
Another priority area is the strengthening of extended producer responsibility schemes, which are appropriate and effective tools for preventing negative environmental externalities. Current patterns of disposal of some products lead to the production of significant amounts of waste, so it is necessary to improve the level of management of this waste and to increase the responsibility of its producers. Strengthening these schemes should not only reduce waste but also encourage innovation in sustainable materials and production processes.
It is also important to strengthen the competitiveness of European industry. A growing number of products that do not meet EU requirements are entering the market via online platforms. The Czech Republic is concerned that the number of such products will continue to rise, inevitably increasing waste management costs, especially given the principle of free movement, which will also affect tax and customs regulations. Therefore, it is necessary to discuss solutions to this issue at the EU level.
CE: How is your ministry supporting the transition to renewable energy and sustainable practices across industries?
Petr Hladík: We support the transformation of the energy sector in terms of legislation, strategy, public support, science and research. The Ministry of the Environment, in collaboration with the Ministries of Industry and Regional Development, prepared a bill to accelerate the development of renewable energy sources. The aim of the law is to shorten the permitting process and introduce so-called acceleration areas. The development of wind and solar power plants in these areas will be facilitated by the fact that any potential conflicts with other public interests, such as the protection of nature and landscapes, cultural monuments, and existing infrastructure, will be assessed and considered when these areas are defined.
In the strategic area, our ministry is drafting the Climate Protection Policy, which includes extensive chapters on energy and industry. Our experts have also contributed to parts of the National Energy and Climate Plan (NECP). We also support research and development in sustainable energy, primarily through the Environment for Life 2 ministerial programme, which is administered by the Czech Technology Agency. This programme includes priority research objectives in the field of RES and reducing greenhouse gas emissions from the energy sector, for example.
Finally, we are a major provider of public support to the energy and industrial sectors. From the Modernization Fund, where, according to current estimates, approximately CZK 380 billion is available for the construction of renewable energy sources and the transformation of the gas industry, including the development of hydrogen production. However, we also support the modernization of the heating sector and the reduction of energy consumption and greenhouse gas emissions in industry, both within and outside the EU Emissions Trading System, as well as in transport and buildings.
There is also an Environmental Operational Programme for the public sector focusing on the development of RES, the replacement of heat sources, and the reduction of energy intensity of public buildings and related processes. The Operational Programme “Just Transition” has a budget of around 42 billion CZK to support the transformation of so-called coal regions. These are regions of the Czech Republic where coal mining and related industries have ceased or will cease soon.
CE: In what ways is the Czech Republic cooperating with EU partners on joint environmental and climate goals?
Petr Hladík: We have a strong and long-term bilateral cooperation on environmental and climate issues, especially with our neighboring countries. We discuss these issues in dedicated working groups, have established cooperation programmes, and are cooperating on transboundary projects in these areas. Regional consultations take place regarding some key plans and strategies, such as the National Energy and Climate Plan.
We are grateful for the support provided from the EU funds, the EEA and Norway Grants and the German European Climate Initiative, among others. On the other hand, the Czech Republic also actively supports the countries of the Western Balkans in the areas of climate and environment. This support takes various forms, including financial assistance, technical cooperation, and the sharing of expertise.
At the multilateral level, the Czech Republic particularly cooperates with other Member States in developing the EU’s common position and supports the EU during international negotiations on climate and environmental issues.
CE: How do you assess the key outcomes of COP29, and what are your expectations for COP30?
Petr Hladík: The key successes of CO29 in Baku are reaching an agreement on the New Collective Quantified Goal on Climate Finance and finalising the rulebook for Article 6 of the Paris Agreement, governing international cooperation and carbon markets.
At COP30 in Belém, we must focus particularly on the issues on which agreement could not be reached in Baku. These include, above all, the implementation of the outcomes of the first Global Stocktake, the just transition away from the use of fossil fuels, and climate change adaptation. To keep the goals of the Paris Agreement within reach and demonstrate a strong commitment to this process despite the challenging geopolitical landscape, it is essential that all parties submit new, ambitious Nationally Determined Contributions (NDCs) in line with the outcomes of the Global Stocktake and the latest climate science, and discuss these together at COP30.
Thank you for the interview.
