EXPLAINED: Why Czechia is locking horns with the EU over climate targets

The EU has this week proposed a new, ambitious climate goal to drastically cut emissions in just 15 years' time, but the Czech Republic is pushing back. Officials in Prague say the target could harm the country’s economy and make energy and fuel more expensive for citizens. 

As the EU debates the proposal, Czechia is calling for a more balanced approach that considers both environmental and economic impacts. Here’s what to know.

The European Commission, the EU’s executive body, has proposed a new climate target: to cut greenhouse gas emissions by 90 percent by the year 2040 compared to 1990 levels. This would be a stepping stone toward the EU’s bigger goal of becoming carbon-neutral by 2050.

According to the Commission, setting the 2040 target now would help businesses plan for the future, encourage investment in clean technologies, and make Europe more energy secure. The target still needs approval from EU member states and the European Parliament.

Czech Prime Minister Petr Fiala said Wednesday his country doesn’t support locking in another climate target without knowing how it will affect the economy.

The Czech Republic also led a group of 18 EU countries—including Germany, Italy, and Poland—in pushing back against the planned expansion of the EU’s emissions trading system (called ETS2), which will apply to road transport and heating buildings.

These countries sent a joint proposal to the European Commission suggesting changes to make the system more stable and predictable. They want to prevent large price swings in carbon permits, which could make heating and fuel more expensive.

Environment Minister Petr Hladík said the 2040 goal “is not realistic” under current conditions. He called for a detailed look at how the plan would affect different sectors of the economy.

Czech officials say they support reducing emissions—but not in a way that could drive up energy prices or place too much burden on households and businesses.

“We want EU climate policy to be ambitious, but also fair and economically sensible,” Fiala said. “We already have climate goals. We need to meet them reasonably and adjust where needed so we don’t threaten Europe’s competitiveness,” he added after a cabinet meeting Wednesday.

The country's automotive industry is one of the backbones of Czechia's economy, and is a lucrative export. More regulations on cars and emissions would ultimately harm Czech industry.

The EU’s environment ministers are expected to discuss the proposal in September. However, a final decision is unlikely before the next EU leaders’ summit in October.