Clean Air Act targets industry

A new Clean Air Act recently approved by the Cabinet would increase emissions fees by several multiples over the next decade, a move environmentalists say was far too long in coming but that industry lobbyists warn could hurt the competitiveness of the economy.

The engine of the Czech economy has long been in the industrial sector, and for the past 21 years, despite the growth of the economy and expansion of industry, emissions fees have remained unchanged. But now, a law drafted by the Environment Ministry would double current emissions fees by 2017, and increase them nearly 10 times by 2022.

"The current system of charging for pollution sources is not sufficiently effective and does not stimulate enough operators to reduce emissions of pollutants or to introduce new low-emissions equipment," said Environment Minister Tomáš Chalupa (Civic Democrats, ODS).

The move, which is part of national efforts to meet lower emissions goals set by the European Commission, has been hailed by environmental groups, which say it is just the first step in addressing emissions that are becoming unsupportable in industrial areas like the city of Ostrava.

"The increase in fees is the first of several steps that will motivate investment in clean technologies," said Vojtěch Kotecký, program director of the environmental organization Hnutí Duha. "Companies will not start paying the high fees until 2022, so in the next 10 years, they will have the money and ... motivation to invest in cleaner technologies so they are ready."

Those in industry, however, have criticized the proposed law, which is set to take effect next July. They say it was hastily and vaguely written, and would hurt the operation of industrial companies, particularly those involved in energy, chemical and steel production.

"If there are competing manufacturers on the market from different countries, Czech manufacturers have to compete with those from countries where there are not similar emissions charges," said Jan Rafaj, vice president of the Confederation of Industry. "It is a clear reduction in the competitiveness of Czech producers. Ultimately, this leads to the fact that we will be less interesting for investment."

A better model for managing emissions would be to allow companies to use emissions fees to upgrade their technology, he added.

Some in the government have also expressed concern about the impact on industry, and the Transport Ministry has questioned parts of the proposal, including a measure for the Environment Ministry to regulate street and parking lot construction and location.

"This is the implementation of European Union law. We may not like it or agree with it, but that's all we can do," Prime Minister Petr Nečas told journalists.

Between 2017 and 2021, emissions fees would grow 3.5 times current levels, and that rate would double in 2022. The hike in fees is meant to encourage companies to adopt newer and more efficient technologies, the ministry said, and would allow the government to collect 870 million Kč ($51.4 million) from polluters in 2021 compared with 500 million Kč currently, and around 1.6 billion Kč in 2022.

The Environment Ministry has said the new system would be simpler, as fees would apply to just four pollutants, and would reduce pollution and dust particle concentration. Profits from the fees would go completely to the State Environmental Fund until 2017, when one-fourth of the fees would be transferred to regional funds.

Both environmentalists and industrial lobbyists pointed out the proposed legislation does little to address pollution outside of industrial areas.

"It is focused almost entirely on industrial pollution from heavy industry and does not deal with small pollution from local sources like heating in households, a major source of pollution in the countryside," Kotecký said. "We need substantive action from the government to also improve air quality in the countryside."

The proposal also includes measures to allow municipalities to enforce zones free of high-emissions cars, as well as gives regional authorities more license to rein in polluters.

The draft will be presented before Parliament in the coming months.

Cat Contiguglia can be reached at
ccontiguglia@praguepost.com