POLICY REPORT: The perspectives of the Czech automotive industry's decarbonization

Our Research Fellow Michal Hrubý examines the current state of the Czech automotive industry and its possible decarbonisation in connection with emissions. He divides his recommendations into five points - bolster green investments, financial incentives are the change-drivers, boost charging infrastructure, support the corporate BEVs fleet market and a ban on ICEVs is not the solution per se. The policy report was written within the project Decarbonisation of the automotive industry in the Czech Republic.

Together with good beer, domestically made, affordable yet high quality cars form the foundation of the Czech national narrative. Carbon intensive industries such as automotive are the backbone of the Czech economic system, making the Czech economy the fourth most carbon intensive in the EU. However, it is precisely the emission-intensive industries that will face the most disruptive challenges in the times marked by digital and green transformations.

In 2018, the total CO2e emissions of the Czech Republic were more than 135 mt and even before then it had been rising consecutively for five years. Energy industries were responsible for approximately 40%, while transportation, including aviation, was responsible for approximately 16% of the total emissions. Industrial processes were responsible for approximately 13% of Czech emissions. To stress the importance of the car manufacturing industry, a share of roughly 10% of the Czech GDP and a share of 14% of the total output of non-financial corporations, can be attributed to it, while employing around 180,000 people. In 2019, almost 1,5 million of cars was produced, followed by more than 1,1 million in 2020 (due to the covid-19 pandemic restrictions and the demand shock).

To find out more about the project Decarbonisation of the automotive industry in the Czech Republic click here.

You can find the whole policy paper under the PDF button below.

Michal Hrubý
Research Fellow

Expertise: EU green economics, heavy industry, transport