The European Commission recently introduced a draft of the revised EU ETS Directive which, among other things, proposes that 100 % of ETS revenues should be used for environmental measures. We welcome this idea but we’re also sceptical about how the ETS revenues are used in the Czech Republic. Therefore, we have prepared an analysis mapping the use of ETS revenues in Czech Republic and sent it to the European Commission as an input for the recent public consultation. The main conclusions are presented below.
Czech law states that 50 % of ETS revenues has to be used for environmental measures, which are enumerated in the ETS Directive. For 2021 the Czech government decided to cap this share at CZK 8 bn. (EUR 310 mil.), the rest of the revenues are considered income to the state budget. In case ETS revenues are higher than CZK 16 bn. per year, as predicted for 2021, there is potential for non-compliance with the ETS Directive, which requires at least 50 % of ETS revenues to be earmarked for climate-related projects.
Information about projects supported from ETS revenues is not publicly available, we assume that some of the means flows into the state budget and aren‘t used for environmental measures. Furthermore, ETS revenues dedicated to the Ministry of Industry and Trade, are used for continuous operating support for photovoltaic projects from the 2010s, which does not have any incentivising effect for the energy transformation. This support would have been paid anyway.
In his political guidelines for the new EU Commission, President Juncker pledged to create a European Capital Markets Union (CMU) to increase non-bank financing of the European economy and further integrate capital markets. In this context, the EU Commission launched a public consultation in February 2015.
Frank Bold co-organised the screening of the documentary “A Dangerous Game” as part of the One World Film Festival, the largest human rights film festival in the world. Organised by the NGO People in Need, it represents a major event in the Czech Republic involving 33 cities and attracting more than 100.000 viewers every year.
Social entrepreneurship has rapidly arisen as an attractive option for changemakers who embrace the idea of entrepreneurship for societal rather than primarily private benefit. They have adopted alternative business models including B-corporations, cooperatives, companies controlled by foundations, and the Belgian Social Purpose Company. Based on this premise, Frank Bold organised an event on the 18th of March to gather people who are committed to deep change to discuss the subject.
