Competitiveness and sustainability: not in conflict, but complementary
Czech Environment Minister Petr Hladík emphasized a key message in his recent address on environmental and industrial policies: European competitiveness and the green transition are not mutually exclusive. On the contrary, they can and should reinforce each other. A greener, more efficient, and self-sufficient economy is essential to guarantee Europe’s long-term prosperity and security.
Renewable energy: the cornerstone of future energy resilience
A central message of Minister Hladík’s remarks was that renewable energy is the key to achieving both energy independence and long-term resilience. Solar, wind, and modern nuclear energy form the foundation of a sustainable energy mix, one that minimizes reliance on fossil fuel imports. The Czech Republic, like many other EU nations, aims to transition from imported energy—especially from volatile sources—towards a home-grown, diversified, and renewable-based system.
This shift not only addresses environmental concerns but also boosts industrial innovation and strategic autonomy across Europe.
Russian Gas Imports Rise Despite EU Goals: A Growing Energy Dilemma
Despite the European Union’s declared objective of ending fossil fuel imports from Russia by 2027, the actual trend shows a contradictory reality. In 2024, EU imports of Russian natural gas rose by 18%, increasing from 38 to 45 billion cubic meters. Countries such as Italy, the Czech Republic, and France accounted for the largest portion of this rise, reflecting persistent structural dependence on Russian energy.
A significant factor in this increase is the growing import of Russian liquefied natural gas (LNG), which has reached record levels. This growth is largely attributed to cost advantages, as Russian gas remains cheaper than many alternatives. In the absence of legal barriers like embargoes, many importers continue to choose Russian supplies based on purely economic reasoning. This points to a wider disconnect between political commitments and market behavior within the EU energy landscape.
Meanwhile, the European Union is planning a 54% increase in LNG import capacity, even though gas demand is projected to remain relatively stable through 2030. Critics warn that this expansion risks creating redundant infrastructure, while simultaneously increasing exposure to new geopolitical risks. For example, while the United States is boosting its LNG export capacity, long-term dependence on any single supplier could introduce new vulnerabilities.
Additionally, the EU currently lacks a binding legal framework or a publicly released phase-out plan for Russian gas. Existing loopholes—such as indirect purchases or the use of opaque shipping practices—continue to allow energy imports from Russia, even in countries where certain restrictions are in place.
Analysts suggest that without a stronger and more unified policy response, the EU’s reliance on Russian gas could grow further in 2025, undermining its long-term energy security objectives.
Czech Republic Reduces Dependence on Russian Oil
On a more positive note, the Czech Republic is making progress in diversifying its oil supply. For the first time, the country will make use of the expanded TAL pipeline, which connects the port of Trieste in Italy to Central Europe. The first deliveries of non-Russian crude oil are expected by mid-April 2025. Once operational, the Czech Republic will rely primarily on the TAL and IKL pipelines, replacing imports previously delivered via the Russian Druzhba pipeline. This shift enables access to a broader range of suppliers, including regions such as the Caspian and Black Seas, the United States, and Africa, marking a significant step toward energy diversification and resilience.
Circular economy: key to autonomy and innovation
Another central pillar is the development of a circular economy. Minister Hladík argued that recycling, reuse, and waste recovery can help reduce Europe’s dependency on imported raw materials, many of which are costly and polluting. His proposals include:
- Tax incentives: lower taxes for circular products, higher taxes on polluting, non-recyclable items
- Bank guarantees and financial support for companies developing sustainable materials
- Investment in infrastructure for reuse and innovative circular technologies
Consumer protection and anti-greenwashing regulation
To support the green transition, clear regulations are needed to fight greenwashing. The Minister called for stronger consumer protections to ensure confidence in truly sustainable products and services.
Defending the internal market: fair competition over fast fashion
Minister Hladík expressed full support for EU-level measures to protect the internal market from unfair competition by non-EU companies that ignore environmental and social standards. In particular:
- He backed the introduction of the CBAM (Carbon Border Adjustment Mechanism)
- He supports taxing imports from platforms like SHEIN and Temu, which operate under unsustainable business models
Cutting red tape and boosting sustainable investment
The new OMNIBUS proposal, which aims to reduce bureaucracy and enable more concrete action, was welcomed as a step in the right direction. According to Hladík, the EU must now:
- Focus on real investment, not subsidies
- Ensure clear and enforceable regulations
- Promote a coordinated EU approach to sourcing raw materials and avoiding internal competition
Conclusion
Minister Hladík’s message is clear: green transition, competitiveness, and independence go hand in hand. Europe must adopt a bold strategy built on clean energy, circular economy principles, and fair rules for all. This transformation represents not only a challenge, but also a great opportunity – including for Italian businesses investing in the Czech Republic.
AI – generated image.
