Making the EU more attractive & competitive

Czech Chamber of Commerce Hosts Energy Policy Roundtable on New EU Commission's Agenda

On November 18, 2024, the Czech Chamber of Commerce convened a high-level roundtable discussion on the energy policy priorities of the newly appointed European Commission. Hosted at the historic Petschek Palace, this event was part of a broader series accompanying the Chamber’s publication, “Prosperous and Resilient Europe: Key Recommendations for the New EU Term 2024-2029.”

The roundtable opened with remarks from Tomáš Prouza, Vice-President of the Chamber, who provided thought-provoking insights to frame the discussion. Lenka Kovačovská, an independent energy consultant, moderated an engaging and dynamic exchange among experts in Czech, European, and global energy policies. The distinguished panel included:

• René Neděla, Director General for Energy at the Ministry of Industry and Trade,

• Bart Vermeulen, Director of EU Affairs at ExxonMobil,

• Zuzana Krejčiříková, Director of ČEZ Regulatory Affairs and Chairwoman of the Energy Section of the Czech Chamber of Commerce, and

• George A. Formandl of Rezolv Energy.

Navigating a Changing Energy Landscape

The roundtable underscored the dramatically shifting context for energy and environmental policy in Europe. Over the past five years, extreme weather events have intensified, driving up insurance costs and exposing vulnerabilities. Meanwhile, the political landscape has shifted, with the recent European Parliamentary elections signaling a rightward tilt and growing calls to “reform the Green Deal.” However, these calls often remain vague and lack actionable clarity.

Amid these dynamics, Europe faces a significant competitiveness challenge, with energy prices significantly higher than in the U.S. and Asia. Mario Draghi’s recent report has amplified concerns, highlighting the need for urgent policy recalibration to address both industrial competitiveness and energy affordability.

Key Recommendations for Policy Adjustment

The Chamber’s policy recommendations advocate a holistic and forward-looking approach to upgrading EU energy policies:

1. Adapting Frameworks for Climate and Decarbonization Goals
   The EU must refine its policy framework to achieve climate adaptation and decarbonization while reducing reliance on Russian energy. Key priorities include:

   • Diversifying energy sources, embracing renewables, nuclear, and gas, with expedited permitting processes.

   • Delaying the gas phase-out to ensure stability during the energy transition.

   • Promoting Power Purchase Agreements (PPAs) and cross-border contracts to stabilize energy prices and attract low-carbon investments.

   • Enhancing hydrogen strategies to include low-carbon hydrogen from natural gas and nuclear energy, while removing barriers to hydrogen market scale-up.

   • Accelerating the development and adoption of Carbon Capture, Utilization, and Storage (CCUS) technologies.

2. Balancing Decarbonization with Competitiveness
   The EU must achieve decarbonization without sacrificing economic growth or industrial competitiveness. To this end:

   • Regulations should avoid redundancies and conflicting mandates.

   • Administrative burdens must be reduced, with deadlines aligned to technological and infrastructural readiness.

   • Pillars of the Green Deal should be reassessed to reflect evolving geopolitical, economic, and environmental conditions.

3. Mobilizing Private and Public Investments
   The green transition requires annual investments of €600-800 billion, equivalent to 4.7% of EU GDP. The private sector alone cannot meet this demand. The Chamber’s recommendations include:

   • Improving the EU’s public-private financing model to attract investments, learning from the U.S. approach.

   • Reforming state aid and competition rules to facilitate investment.

   • Avoiding windfall taxes and retroactive regulatory changes that deter investor confidence.

A Narrow Window for Action

Participants emphasized the urgency of presenting well-developed, evidence-based proposals to streamline the Green Deal framework. While the European Parliament’s ability to drive legislative changes remains limited, the European Commission could act decisively, as it did during the COVID-19 crisis, to suspend or revise regulations. For businesses and EU governments, this is a critical moment to propose actionable solutions that reduce administrative burdens and support a balanced, sustainable energy transition.

The Czech Chamber of Commerce's roundtable highlighted the need for a pragmatic, inclusive approach to energy policy—ensuring Europe remains competitive, resilient, and environmentally responsible in an increasingly challenging global landscape.