Fit for 55 will have a major impact on Czech businesses, its goals must be achievable

In July 2021, the European Commission released the Fit for 55 package, one of the key initiatives of the Green Deal for Europe. The initiatives in the package were the main topic of a meeting of CEBRE founders and Czech MEPs, which took place in Prague on December 3^rd.

CEBRE founders – the biggest employers’ associations in the Czech Republic, agreed with MEPs that the package will have a major impact not only on Czech industry and businesses, but also on all citizens. Representatives of business organisations agreed on the need to take action to combat climate change and in general support the EU’s long-term goal of becoming a climate neutral continent.

However, these efforts must be in line with the conditions and possibilities of the country concerned. The taxonomy rules will have a major impact on the transition to clean energy sources. In this area, the Czech Republic is fighting for nuclear energy to be recognised as a clean energy source, which is also supported by business organisations. In addition, gas needs to be recognised as an interim solution to enable a gradual reduction in coal-fired power generation.

Currently, the EU accounts for around 8% of global greenhouse gas emissions, so it is essential that the world’s largest emitters in particular take on the role of reducing them and that there is no carbon leakage outside the EU. In this context, business organisations welcome the proposal to create a Carbon Border Adjustment Mechanism (CBAM) to prevent carbon leakage. However, it must be in line with World Trade Organisation (WTO) rules. If not, European businesses would be at risk of restrictive measures in third markets. However, the introduction of the mechanism should not affect the free allocation of emission allowances to European industry.

Given the huge impact of the package on the competitiveness of Czech companies, CEBRE founders demand a thorough impact assessment to be carried out, not only for the whole EU, but for the Czech Republic alone as well. The EU funds earmarked to finance the green transformation will also play an important role and the Czech Republic must make the most of them.

Most importantly, the final version of the package needs to set targets that are achievable. During the meeting, CEBRE founders also expressed their interest in working with all Czech MEPs on these issues in the future.