Czech Heavy Industry Decarbonisation: Policy and Financing Roadmap

Heavy industries face several specific obstacles to reducing emissions to net zero:
the high upfront costs of new low-carbon technologies, long-lived production facilities with often a single renewal window open until 2050, low readiness level of many technologies, and often internationally traded low-margin products – discouraging early adoption of new technologies and carrying the risks of carbon-intensive foreign competition.

How do the policy and financing environment and their appropriate settings contribute to the decarbonisation of hard-to-abate industries in the Czech Republic?

This Policy and Financing Roadmap outlines key aspects on the decarbonisation pathway for the Czech hard-to-abate industries – cement, steel and chemicals – primarily in the 2030 horizon, taking into account the ultimate 2050 net-zero target. It focuses on the main aspects of the transition pathway:

• starting position and current challenges,

• EU and national policy environment,

• key investment areas and capex estimates,

• available private and public financing capacities.

The report links policy, investment and financing aspects relevant for the Czech heavy industry decarbonisation and proposes solutions to the obstacles that industrial stakeholders may face on the decarbonisation pathway. Investments and financing needs are clearly correlated, and policies, regulatory environment and government incentives and/or levies must also be aligned with decarbonisation targets to be mutually consistent.