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Reform Support

Integrating the “Do No Significant Harm” (DNSH) principle in Czechia to guide the green transition

Funding Programme
Technical Support Instrument (under the European Recovery and Resilience Facility)
Year
2022

Supporting reforms to ensure efficient and effective revenue administration and public financial management

The Commission is supporting the Czech authorities in implementing the DNSH criteria in funding decisions with the view to advance green transition. The Office of Government is the main beneficiary, with close involvement of Ministry of Environment, Ministry of Regional Development and the Ministry of Industry and Trade. As a result of the project, Czech authorities are capable to make reliable funding decisions that do not cause harm for the environment and are able to fast tract green transition. The project is supported by the European Union’s Technical Support Instrument.

Context

The European Green Deal aims to make Europe climate neutral by 2050. To reach this goal, support from various EU funds and programmes are instrumental for Czechia. Czechia has allocated 42% of Recovery and Resilience Facility (RRF) funds to support the domestic green transition. When preparing its Recovery and Resilience Plan under the Recovery and Resilience Facility (RRF), Czechia has confirmed its compliance with the DNSH principle, which is defined by Article 17 of the Taxonomy Regulation. This principle can also be recognised - though to a lesser extent - in other established EU funded programmes such as the Just Transition, InvestEU, Horizon Europe and the European Regional and Development Fund. Czechia intends to increase its administrative capabilities and knowledge on the application of the DNSH principle to ensure that reforms and investments planned in the country are in line with EU and national climate and environmental targets. 

Support delivered

The support provided to the Czech authorities is in three interlinked phases between 2022 and 2024:

  1. Identifying and understanding of existing mechanisms and guidelines for the application of DNSH in the Czech context as well as in other EU Member States.
  2. Creating DNSH guidelines for Czech funding authorities and funding beneficiaries and delivering capacity building and communication material on the national guidelines to the Czech authorities who provide funding.
  3. Providing accompanying support for implementation of the national DNSH guidelines, including organisation of seminars to raise awareness and share experiences nationally and at EU-level

Results (to be) achieved

The project provides guidance to Czech authorities in implementing the “Do No Significant Harm” (DNSH) criteria and ‘climate proofing’ (CP) in funding decisions. As a result, Czech authorities will have a good understanding of how public funds are currently directed to help achieve climate and energy objectives. They will have the capability to quickly and reliably make funding decisions that accelerate the green transition and do not cause harm to the environment.