Czech government does not approve 2038 carbon leakage, calls for more ambitious scenarios

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The Czech government has sent back a recommendation to the Coal Commission to phase out coal by 2038, saying it will examine the options for an earlier phase-out, the industry ministry said on Monday, after disagreement over the target emerged in the ruling coalition.

The Czech Republic generates slightly less than half of its electricity from coal, but is aiming to cut it significantly in the coming decades as part of a drive to cut carbon emissions.

Last week, the country’s largest utility, the majority state-owned CEZ, announced plans to close most of its coal-fired power plants by 2030 and reduce the share of coal in generation from 36% in 2020 to 12.5%.

The Coal Commission on the Future of Coal proposed a target date of 2038 in December, choosing the middle of three options. But the Social Democrats, the smaller party in government, agreeing with environmental groups, would prefer a 2033 exit.

The ministry said on Monday that in the light of rising prices for emission allowances, the committee should examine alternatives to an earlier exit date than the proposed 2038 date and assess the impact on the domestic energy market. The 2038 target date is the same as that of neighbouring Germany.

Source: Reuters

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