Czech industry criticizes EU emissions reduction target by 2040

The Czech government should not support the European Commission's climate target of cutting emissions by 90% by 2040, as it is unattainable and would hit the industry-dependent Czech Republic hard. Therefore, warn the Czech associations of energy-intensive sectors, including the Czech-Slovak steel association Steel Union.

Earlier this month, the Commission published a detailed impact assessment that recommended cutting net greenhouse gas emissions by 90% by 2040, compared to 1990 levels. In response, Eurofer said EU steel producers were committed to carbon neutrality by 2050 but needed further much-needed support.

“The proposal is based on unrealistic assumptions and completely ignores the fact that the European Union and individual Member States have not yet created the conditions necessary for large-scale investments in green industrial transformation in individual countries,” the associations commented in a joint statement.

“If the proposed target is confirmed, it will have serious economic and social consequences for millions of people across Europe and the long-term competitiveness of EU businesses,” they said. Since industry makes a significant contribution to the Czech GDP, the country will be particularly affected, they add.

The main factors affecting competitiveness are expensive energy and emissions quotas, economic recession, lack of effective industrial policy, insufficient decarbonization infrastructure, limited availability of low-emission technologies and large bureaucracy, it said. This is combined with comparatively smaller efforts by third countries to reduce emissions.

The ambitious goal comes “at the worst possible time, when industrial production in Germany and in our country is stagnating.” If the proposal had been accepted, we would have lost ten years of time that we should have had for decarbonization,” says Ivan Soucek, director of the Czech Chemical Industry.

The proposed target must be re-evaluated to reflect the real possibilities for decarbonising European businesses and society as a whole, the associations conclude.