The Czech Republic’s largest steelmaker Třinecké Železárny has announced that the government of the Czech Republic has finalized a decision to fully compensate industrial companies for indirect carbon related costs incurred in 2024. Among the 32 firms receiving support is Třinecké Železárny, the only domestic crude steel producer in the country.
Significant support for energy-intensive steel production
Total state support allocated exceeds CZK 2 billion ($95.86 million), spread among eligible manufacturers from sectors deemed at risk of carbon leakage.
For Třinecké Železárny, which is facing high energy intensity, the compensation helps offset the added costs of emission allowances passed through energy prices.
CEO Roman Heide stressed that, without it, the steel industry’s competitiveness would suffer further during a difficult period for the sector.
Why the compensation matters now
Indirect carbon costs have burdened many energy-intensive industries across Europe. The compensation helps mitigate:
- sharp rises in electricity and production costs,
- potential loss of competitiveness versus less-regulated producers,
- risk of production cuts or shutdowns in key sectors like steel.
The aid allows the company to preserve jobs, maintain production stability and support further environmental upgrades without losing competitive ground.