EC approves CZK 40-billion subsidy to help clean energy transition in Czech coal regions

A newly-established fund will cover the costs of future mine and power-plant closures.

ČTK

Written by ČTK Published on 26.09.2022 15:28:00 (updated on 27.09.2022) Reading time: 1 minute

Brussels, Sept 26 (ČTK) - The European Commission approved today a subsidy worth EUR 1.64 billion, over CZK 40 billion, in support of the Czech regions leaning on coal energy production.

The money will go to the Karlovy Vary, Ustí, and Moravia-Silesia regions to support their transition to clean energy.

The funds will be provided by the newly established Just Transition Fund (JTF). Until 2033, the fund can be used to cover the costs linked to the closures of coal mines and coal-fired power plants.

In all three of the above-mentioned regions, 21,000 jobs are directly linked with coal mining and the subsequent use of coal for energy production. The EU money should support, among others things, the retraining of staff, renewable sources of energy, and relevant research and development.

Executive Vice-President for the European Green Deal, Frans Timmermans, in Prague today to attend the Green Deal summit, a conference on the theme of the Green Deal for Europe, said: 

“Czechia is a country with a rich industrial tradition and a promising future. Together with the Modernisation Fund, the Czech Just Transition Plan will help deliver a fair transition to climate neutrality. The European Commission is on Czechia's side to work for a healthy, green, and fair future for the country.”

Timmermans delivered the opening remarks at today's summit. The EU's JTF is comprised of almost EUR 20 billion in total. It is primarily aimed at helping industrial former East Bloc countries; Poland is the recipient of the biggest share.

A demonstration against the Green Deal summit, which in addition to Timmermans will host Minister for European Affairs Mikuláš Bek and CEO of ČEZ Daniel Beneš, is planned for the center of Prague. The protest is organized by the PES Movement, SPD Praha, and Trikolora.

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Timmermans, in Prague until Tuesday, is set to visit the Škoda factory together with Anna Hubáčková, Minister for Environment, the Czech Institute for Informatics, Robotics and Cybernetics, and participate in a discussion with students of the institute and young researchers.

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