This progress, however, comes at a crucial political moment.
New Omnibus Simplification proposals currently debated in the European Parliament would significantly weaken the CSRD’s scope and ambition, raising thresholds to companies with over 1,000 employees and €450 million turnover.

Such a change would exempt nearly 90 percent of European companies, undermining both the transformative potential of the EU’s sustainability agenda and the data quality investors, regulators, and businesses themselves depend on.
It would also weaken Europe’s long-term competitiveness and its ability to respond to energy, climate, and technological risks.

Frank Bold’s analysis covered 100 companies from Western Europe and Central and Eastern Europe (CEE), assessing disclosure quality in four areas:
a) climate transition plans, b) GHG emissions, c) double materiality and due diligence, and d) governance.

Across these dimensions, evidence shows that the EU’s legal framework is working, improving comparability, accountability, and climate-risk preparedness among Europe’s largest firms.

Climate risk preparedness

• Companies across the board showed notable improvements on their climate transition planning, with 54% presenting a plan and 73% committing to decarbonisation targets.

• Strinkingly, 40% committed to net-zero targets. Thereby, clearly distinguishing themselves from general carbon neutrality commitments.

• Yet, many plans still lack detail on implementation timelines, interim targets, and financial assumptions—limiting their credibility and comparability.
  

GHG Accounting

• Reporting of Scopes 1, 2 and 3 emissions is now near-universal, a major leap in transparency.

• Comparability of Scope 3 data has improved, though a minority of companies still provide incomplete or inconsistent information, particularly on supply-chain emissions.

• Carbon removals and offsets remain a blind spot, with few firms disclosing clear strategies or verification details.

Double Materiality and Due Diligence

• Progress is striking: between 2024 and 2025, the share of companies reporting their material impacts and risks and opportunities rose from 15% to 94 percent, and 53% to 94 percent, respectively.

• While most companies (85%) claim to consider their entire value chain, few detailed high risk areas or explain how they are monitored. 

• Similarly, while nearly three-quarters claim to have a due diligence process in place, only 34% link it to due diligence and double materiality, and only 12% explain how that link works in practice.

Managing Sustainability

The EU CSRD became the bridge for sustainability, financial, operational and legal teams to discuss with their leadership the sustainability risks and impacts that are relevant for the strategic development of their business.  

Governance disclosures reveal the maturity of oversight and how sustainability is prioritised at senior levels. While our study shows that sustainability has entered the boardroom, transparency on important actions and decision-making is still missing.  

Regional Differences

• Western European firms generally demonstrate stronger climate transition planning and more complete data, while CEE companies lag behind in identifying and reporting climate risks. This gap exposes CEE firms to greater vulnerability to climate-related shocks and regulatory uncertainty.

• Only a few CEE companies extend their double materiality assessments beyond direct operations to full value chains. This limits their ability to anticipate material risks, impacts and opportunities, reducing supply chain resilience.

• Nonetheless, the gap is narrowing.
  The introduction of the European Sustainability Reporting Standards (ESRS) has begun to level the playing field, particularly in the disclosure of GHG metrics and the financial effects of climate risks.
  

Policy Context: A Framework Under Pressure

Our findings show that Europe’s sustainability reporting rules are effective, but they are being reconsidered just as results become visible. 

The Omnibus I Simplification Package proposes raising thresholds drastically for both the reporting and due diligence legislation. If adopted, these changes would exclude most companies from reporting requirements and the mandatory development of climate transition plans. As warned by the European Central Bank, this will create severe information gaps and undermine business-to-business relations. Additional consequences include the limitation of opportunities for mid-cap companies (in relation to financing or competition with larger companies) and increase financial institutions’ reliance on costly external service providers. 

While intended to reduce administrative burden, such measures risk rolling back Europe’s global leadership on sustainability and weakening corporate resilience to systemic risks. By scaling back, Europe would not only sacrifice data quality but also the tools companies need to navigate the transition to a sustainable economy. 

Looking Ahead

Frank Bold’s report confirms that mandatory reporting under EU standards works; it fosters transparency, comparability, and strengthens the competitiveness of EU companies globally. 

As mentioned by EU Commission’s Executive Vice-President Teresa Ribera, Europe’s industry is ready to lead in delivering green, resilient, and high-standard solutions amid a growing $2 trillion global clean tech market.  

High-quality, comparable sustainability data is essential to scale up clean technologies and advance the EU’s strategic goals in energy efficiency and resource autonomy. The CSRD provides the information infrastructure necessary to strengthen Europe’s industrial competitiveness and resilience in the global race for green technologies, and withstand pressure from oil-producing countries to maintain dependence on fossil fuel imports. 

The research, published in October 2025, will be complemented by an open-access database launching in late November 2025, offering detailed company-level data for further analysis. 

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The framework defines the essential components of effective MEPS implementation, including country-readiness assessments, design principles, implementation pathways, and systems for monitoring and evaluation. Conceived as a comprehensive roadmap, it ensures coherence, accountability, and measurable results from the initial planning stage to full-scale adoption. Importantly, it will provide a basis for national decision-makers in Bulgaria, Romania, and Croatia as they prepare country-tailored MEPS frameworks and advance the drafting of National Building Renovation Plans (NBRPs) to be submitted to the European Commission by the end of the year. The development of the General Guiding Framework was informed by a series of stakeholder events across the region. In September 2025, the Round Table on Minimum Energy Performance Standards held in Virovitica initiated dialogue with representatives of local authorities on aligning municipal and city activities with new MEPS requirements. Participants highlighted opportunities and barriers to implementation, with conclusions feeding directly into the preparation of the framework.

Further refinement came through the Workshop for national decision makers in Zagreb in June 2025, where representatives from the Ministry of Physical Planning, Construction and State Assets reviewed the framework in the context of the revised Energy Performance of Buildings Directive (EPBD). Discussions focused on national specificities, particularly the challenge of meeting EU targets requiring renovation of at least 16% of the worst-performing non-residential buildings by 2030 and 26% by 2033. This workshop underscored the importance of structured dialogue among policymakers, experts, and practitioners in shaping MEPS as a credible tool for accelerating deep renovations.

Complementing these activities, consultation and policy-oriented roundtables in Romania provided additional insight into national contexts. These discussions brought together central authorities, municipalities, and energy efficiency experts to clarify institutional responsibilities, address potential barriers, and ensure that the upcoming national MEPS guides are feasible and adapted to local realities.

In Bulgaria, EnEffect gathered local and national decision makers at the discussion forum “Mayors Speak,” and held Roundtable on Minimum Energy Performance Standards (MEPS).

The event aimed to spotlight the practical challenges and solutions for implementing sustainable development policies at the local level, and, in addition to local and national decision makers, it also brought together international partners, experts, and citizens from across Bulgaria.

At a time when existing renovation policies fall short of achieving the scale of improvements required, MEPS represent a strategic policy instrument to accelerate the energy transition. By setting minimum performance thresholds and embedding them within a supportive policy framework, they offer a pathway to decarbonisation while unlocking economic and social co-benefits.

REDESIGN project’s General Guiding Framework thus provides a structured and coherent foundation for Member States, paving the way toward effective MEPS implementation and stronger renovation outcomes across Central and Eastern Europe.

During this time three governments were involved and several drafts circulated, commented, amended, withdrawn, forgotten, resubmitted, consolidated, watered down and eventually adopted. At the same time climate change developed from a distant threat into national catastrophe(s): in 2022 the largest forest fires in history hit the country’s coastal region; in 2023 devastating floods affected most of the country and destroyed roads, bridges and whole villages; after decades of tradition the city of Maribor lost the FIS Ski World cup race due to consistent lack of snow; summer heat waves and storms with strong winds, rain and hail have become more frequent and intense. Slovenia is the European country with the highest economic losses per capita and per square meter caused by weather- and climate-related extreme events.

Climate neutrality until 2045 – but the path there is still unclear

Against this background it should be in Slovenia’s self-interest to be a climate leader and try to convince other countries to reduce emissions. And indeed, with the climate law Slovenia upped its long-term climate ambition by moving the target for climate neutrality from 2050 to 2045. This is a necessary step towards consistency with the goals of the Paris Agreement, but not enough. 

Binding intermediate targets for 2035 and 2040 are lacking, which increases the risk for backloading emissions reductions towards mid-century. Moreover, the new law in large parts merely transposes the EU climate acquis without going beyond it with national measures. A small exception is the introduction of a new, albeit very modest, climate tax on flights with private jets of up to 250 EUR per flight. 

Slovenia commits to the emissions trading system for buildings and road transport

Slovenia is at least rather diligent in implementing EU legislation. A central new EU climate policy is the extended emissions trading scheme (ETS) for the sectors buildings and road transport. Several EU member states have not yet transposed the new EU ETS directive into national law. Some even openly talk about not implementing the new ETS at all. 

Slovenia’s climate law transposes the directive and establishes the national Social climate plan, which is intended for the most socially vulnerable. Almost half a billion euros will be allocated to supporting poorer households in reducing their emissions and to eliminating mobility and energy poverty. Slovenia missed the June deadline to submit its national Social climate plan to the European Commission, which is the prerequisite for receiving EU funding, but intends to submit the plan later in autumn 2025.

Climate justice at risk without a phase-out of harmful subsidies

But even the best social climate policy plan – and we do not know yet how good the Slovenian will be – will not be effective if at the same time fossil fuel subsidies are continued. And this is the largest weakness of the new law. It does not only fail to regulate the phase-out of fossil fuel subsidies, but industry lobbies even managed to slip in an article entitled reduction of levies and taxes on fossil fuel. By automatically reducing excise duties when emission certificates of the new ETS hit a certain price threshold, the climate law itself introduces a new subsidy. 

This contradicts the polluter pays principle which is supposed to guide the very same law. Moreover, it sends the wrong signal, namely that CO₂ emissions will continue being cheap and unproblematic. In absolute terms this new subsidy benefits the rich much more than the poor and therefore increases the already growing economic inequalities in Slovenia. Such a scattergun approach of reducing excise duties for all disregards the large differences between income groups, both with regards to their responsibility for the climate crisis and their capabilities for reducing emissions.

The share of expenditure on transport by income group and car access in Slovenia in 2022 shows that poorer car owners are very vulnerable to fuel price increases (source: Focus)

The hundreds of millions of euros Slovenia spends on subsidies for fossil fuels could be invested in measures for a just green transition: in better public transport, which would reduce car dependency; in energy-efficient renovations of housing stock, which would reduce household heating costs and improve quality of life; in affordable public housing in the cities, which would reduce the need for daily commuting; in adaptation to the increasingly severe consequences of the climate crisis. In short, reducing dependence on fossil fuels has the potential to lower the prices of basic necessities, improve quality of life, and increase social resilience.

Climate change adaptation planning: prepare for the worst

Finally, the law also manages how climate change adaptation will be addressed by the state. Current assessments and strategies in this field are largely incomplete or outdated.  The law provides for the preparation of a new national strategy, risk assessments for all sectors and regional action plans for adaptation. At the same time a large integrated LIFE project started in 2025, LIFE4ADAPT, which is meant to support the implementation of the Slovenian adaptation strategy over the next seven years by enhancing knowledge, and strengthening institutional capacity.

Lipica, home of the famous Lipizzan horses, is already a drought-prone area and may turn into a savannah by the end of the century (source: Umanotera)

In summary: a mixed bag with several holes

Slovenia’s climate law in its current form will not be a game changer for national climate politics, nor does it serve as a suitable blueprint for other countries. The positive aspects like the 2045 climate neutrality target or the new tax on private jets are mainly symbolic, while controversial issues such as binding national targets from 2030 onwards or the phase-out of fossil fuel subsidies have been spared out. It remains to be hoped that at least the plans for better adaptation to climate change and social-climate policy will succeed. This is because climate change and its consequences will continue to intensify in the northern Adriatic region – on the hot side of the Alps.

As partner of the project ClimateFairMonitor Umanotera, the Slovenian Foundation for Sustainable Development, supports the socially just implementation of ETS2 and SCF aiming to reduce emissions in buildings and transport while empowering stakeholders and promoting equitable climate policy in Slovenia and other countries of Central and Eastern Europe. 

One-Stop Shop systems: simpler renovations, greater impact

The aim of the study tour, as well as of the previously prepared handbooks and online training sessions, was to provide practical support to Albanian and Kosovan decision-makers and advisors in making energy renovations more accessible and transparent. The essence of the One-Stop Shop (OSS) model is to bring together all the services needed during renovation – technical advice, financial opportunities, grant application guidance, legal assistance, contractor databases, etc. – within a single, well-organized, and coordinated platform.

During the study tour, implemented within the framework of the RenovAID project, participants gained a comprehensive overview of Hungary’s energy efficiency efforts, innovative financing solutions, the Energy Efficiency Obligation Scheme, as well as the rural “LakHatás” program of Habitat for Humanity and Erste Bank, which supports families living in energy poverty with complex assistance covering technical, financial, social, and administrative aspects.

We presented in detail the previous project of Energiaklub Climate Policy Institute, called RenoHUb, which resulted in the establishment of Hungary’s first One-Stop Shop advisory network, RenoPont. We outlined the process of selecting and training reliable contractors and addressed developments that followed the project’s conclusion. The study tour also included site visits: participants were introduced to RenoPont advisory services operating within the Metropolitan Housing Office, and visited a model condominium renovation in Káposztásmegyer, implemented through a market-based One-Stop Shop advisory office.

As the latest good example, we introduced the details of the Budapest Green Panel Program, where not only is the cooperation between the metropolitan and district municipalities exemplary, but also the two-tier application system, the 100% financing of planning, and targeted advisory support for condominium managers provide a highly adaptable model for other cities – especially in countries where, as in Hungary, no state support is available for condominium renovations.

From Energy Poverty to Climate Neutrality – Local Responses to EU Expectations

According to the European Union’s objectives, it must achieve climate neutrality by 2050, and by 2030 it must reduce greenhouse gas emissions by at least 55% compared to 1990 levels. Achieving these goals relies heavily on the energy-efficient renovation of the building stock, one of the most cost-effective ways of which is the operation of a One-Stop Shop advisory system. The OSS model not only provides technical, financial, and administrative support to households wishing to renovate their homes, but also plays a role in awareness-raising: through targeted communication, marketing activities, coordination, and monitoring, it makes renovation processes more attractive, reduces information barriers, and contributes to the long-term energy transition.

Although Albania and Kosovo are not members of the European Union yet, both countries aim to join. Therefore, the EU actively supports them in starting to adopt the acquis communautaire now – particularly in the fields of energy and climate policy, where preparation is a lengthy and complex process. Such support is intended to lay the groundwork for meeting future membership obligations and to promote socio-economic convergence.

Education, Knowledge Sharing, Action Plans

During the study tour, participants not only had the opportunity to listen to high-level presentations and ask questions of leading experts (Hungarian Energy Efficiency Institute, Habitat for Humanity, Budapest Public Utilities and Projectdoctor), but also gained practical knowledge during field visits. The program concluded with interactive group work, during which the Albanian and Kosovan participants developed separate action plans on how they would implement the OSS model in the cities of Tirana and Priština. They analyzed the characteristics of the two capitals, identified the target groups to be supported, outlined the service structures that would best facilitate condominium renovations, identified potential partners, began to establish cost and revenue plans, and also started drafting a work plan listing the steps to be implemented in the future.

The Next Step: Implementation

The action plans developed during the study tour will be finalized during the next phase of the project. As a result, the materials produced so far – the handbook, online training, and study tour – will not remain theoretical: Albanian and Kosovan municipalities will be able to apply them directly in practice, thereby directly supporting the energy transition in Albania and Kosovo and creating the conditions for launching an effective One-Stop Shop advisory network built on the needs of the population.

A year has passed since households and organisations in the Czech Republic were allowed to share electricity. Community energy pioneers are discovering that it will take significant effort before electricity can be shared seamlessly. Yet despite these obstacles, their early initiatives show just how much meaningful progress can be made. 

In Slavkov, near Brno, an ambulance sits in one of South Moravia’s emergency services depots, charging from the grid. The energy that powers its equipment and flashing lights comes from solar panels on the depot roof. On a warm May day, like the one during our visit, the panels generate enough electricity to power both the ambulances and the facility’s daily operations. And even then, there’s still a surplus left over for other depots in the region.

‘Our community energy project began last October. Based on our calculations, sharing electricity across 12 photovoltaic roofs has saved us CZK 150 000 (around EUR 6000) so far,’ says Tomáš Jagoš of CEJIZA, the region’s public procurement agency coordinating the project.

In the coming months, up to 250 members are expected to join – from schools and retirement homes through education and leisure centres to museums, hospitals, and regional organisations. Solar energy is currently generated across 12 roofs from 24 bases in the region, with 18 buildings participating in the energy-sharing initiative overall. 

Petr Halamíček, a technician at the Slavkov depot, shows us a switchboard in the technical room. ‘From here, we feed our electricity into the grid.’ Since energy communities can’t build their own wiring networks, they rely on the regular distribution grid. Mandatory electricity meters allow community producers to record how much electricity they’ve sent to the grid and how much they’ve received. 

In July 2024, an amendment to the Czech Energy Act came into force, establishing the legal framework for community energy and electricity sharing. A few weeks later, the launch of the Energy Data Centre, a national electricity-sharing data hub, paved the way for households, businesses, municipalities, and associations to produce energy – mainly from renewable energy sources – and share it across the grid. Within just six months of its launch, nearly 23,000 participants had joined the initiative. 

Community energy is more than just climate-friendly – it helps to decentralise and democratise energy systems, reduce energy poverty, and increase the resilience of communities to global price shocks, such as those caused by Russia’s invasion of Ukraine. Yet its deployment has only just begun, and pioneers face a whole host of legal, economic and political obstacles.

An uncertain investment

Elsewhere in South Moravia, Jasan, a South Moravian social enterprise, recently joined the national energy-sharing initiative through an energy cooperative founded by Hnutí DUHA, a leading Czech environmental movement and member of Friends of the Earth. Asked why they took part, Renata Jandova, a representative of the enterprise, explains: ‘Our main goal is to reduce electricity costs.’ 

But setting up energy sharing in a profitable way is no easy feat. Returns are limited, as shared energy can only supplement – not replace – traditional energy suppliers. Members of the cooperative reduce their bills only for the portion of electricity covered by shared production. They still have to pay the distribution fees and other charges that make up most of the final bill. To make matters worse, these costs continue to increase.

Profitability is further affected by necessary upfront investments, such as the reconstruction of fuse boxes to fit the legally required electricity meters. ‘Even a CZK 30 000 (EUR 1200) investment can be discouraging for households hoping to save thousands of crowns a year through energy sharing,’ Jagoš notes. Old substations can make energy sharing expensive, even for local authorities and larger organisations managing multiple switchboards. 

Jagoš highlights the challenges posed by a changing legal framework, which complicates the design of long-term, competitive business models: ‘You could say that, by sharing at this price, you’d pay off the costs within that time frame. But then a legal change might occur, affecting what was originally intended as a multi-year investment.’ 

Adding to the uncertainty, the Energy Data Centre, which collects data on energy sharing in the country, is currently only operating on an interim basis. This restricts both how electricity can be shared among community members and the regions in which it can be distributed. According to the Energy Law, this interim regime is expected to remain in place until July 2026. However, there are concerns the timeline could be extended, potentially disrupting the cooperative’s plans. The Ministry of the Environment has stated that the timetable is established by law and that the institutions involved are working to implement it on schedule. 

When the countryside profits, so do the people 

Martin Hutař, founder of the ecological farm Probio, is a trailblazer of Czech ecological agriculture. In 2008, he launched his project in the Eastern Sudetes, purchasing the facilities of an old cooperative and its surrounding fields, in the village of Velké Hostěrádky in South Moravia. There, he began cultivating wheat and raising cattle on 400 hectares of land.  

Hutař runs through all the projects and groups the farm hosts: ‘We repaired what we needed, but there was a lot of unused space left over. Over time, more and more people started getting involved. Jasan started out here, and we lent them some land where they now grow vegetables. One lady started a forest tree nursery. A farming school was even established.’ 

The farm and its related enterprises all boast relatively low energy consumption, which is why it made little economic sense to build their own renewable energy system. Only now are its members planning to install solar panels on the roof of one of the buildings, marking the cooperative’s first photovoltaic installation.

Hutař’s approach to community energy reflects his philosophy on ecological agriculture. To him, both are ways of reviving the Czech countryside. He notes that, unlike in cities, constructing photovoltaic installations, hydropower plants, or wind turbines is much cheaper in rural areas, creating opportunities for local benefit. ‘When the countryside profits, so do the people,’ he says. ‘They’ll live and work here. But it’s crucial that we work with municipalities and create the right conditions for them.’ 

Cooperative or manufacturing firm?

As the Hnutí DUHA project illustrates, building energy communities in the Czech Republic on a cooperative basis is far from straightforward. Hutař was approached by the cooperative in early 2022 – two years before the rollout of the South Moravian emergency unit’s energy-sharing project. Yet to this day, solar panels have not been installed, an no concrete plans are in place. 

‘All this time, we’ve been waiting for the distributor, EG.D., to rebuild the substation so they can connect us,’ says Ondřej Pašek, coordinator of the Hnutí DUHA energy cooperative. He hopes the photovoltaic installation will be up and running by autumn 2025. But delays continue to mount, despite the distributor granting the cooperative permission to connect as far back as May 2023. ‘This is a major barrier to renewable development. In so many places, new solar plants just can’t get connected to the grid,’ Pašek notes.  

The Hnutí DUHA cooperative was established in December 2023 and now boasts over 200 members nationwide. Each member has one vote, giving them a say in which projects the cooperative pursues. The Velké Hostěrádky plant is set to be the first tangible example of how cooperative energy sharing will work in practice. 

However, connection delays are far from unique, and the Probio farm is not an isolated case. Energy communities face difficulties securing subsidies or identifying suitable sites for renewable installations, partly because Czech legal and subsidy frameworks are not designed for cooperative or community-based energy management. ‘Most people don’t understand what we’re about,’ Pašek explains. ‘There’s a common misconception that we’re some kind of manufacturing firm.’ 

Currently, Czech subsidies primarily target municipalities or individual entrepreneurs, not energy communities – and especially not cooperatives. ‘One support scheme has just been opened for communities looking to build photovoltaic plants, but it requires municipal investment in the project, which doesn’t apply to us.’

From administration to investment 

Pašek highlights the uncertainty of the Czech subsidy landscape: ‘The country lacks investment support with a long-term outlook. How things will look next year, nobody knows.’  A rare example of good practice comes from a flexible support scheme implemented by the Ministry of Environment. The call included cooperatives as eligible recipients and covered administrative costs linked to the establishment of energy communities. A total of CZK 116 million (EUR 4.6 million), financed through the EU’s Recovery and Resilience Facility, was divided among 15 recipients, including CEJIZA, Hnutí DUHA’s cooperative, and BYTES Tábor.  

Administrative setup, however, is just the start. Bigger investments – like solar panels and other renewable infrastructure – are expected to be supported by the KOMUNERG programme, a Modernisation Fund initiative planned since December 2023. In theory, about 2.8 per cent of the Modernisation Fund could be earmarked for community energy. Based on the estimated price of emissions allowances, this would amount to roughly CZK 10 to 11 billion (between EUR 400 and 440 million).  

Regrettably, most Modernisation fund subsidies have thus far ended up lining the pockets of the Czech energy giants, delaying support for energy communities. The Ministry of the Environment blames the legislative process but expects the first call for projects to open in autumn 2025.  

Meanwhile, community energy advocates worry that even the funds from the KOMUNERG programme may be dominated by larger players better equipped – legally and administratively – to compete for these subsidies. Another concern is that national and European priorities could shift away from energy communities and renewables towards, for example, defence spending. 

If that happens, it could become nearly impossible for Czech community energy projects to remain competitive, even once the legal framework stabilises. ‘In the Czech Republic, it’s simply impossible to produce energy without subsidies,’ says Pašek. ‘Energy prices need to be guaranteed. Even the new Dukovany nuclear project tender comes with electricity price guarantees. What we wouldn’t give for that!’ adds another member of the cooperative. 

Community or communal energy?

Jagoš points to a peculiarity in the structure of Czech energy communities: ‘At present, we’re seeing the greatest interest coming from small municipalities. In this sense, the Czech Republic is a bit unusual. Elsewhere in Europe, it’s mostly driven by individuals at the forefront of community energy.’ Municipal involvement is also reflected in statistical data on subsidy recipients for energy communities.  .

Like in many other areas, the development of community energy depends on local political support – mainly that of mayors. ‘We can divide mayors into three groups. One third are innovative, forward-looking, future-oriented; they like new solutions. The lower third tends to look backward, and anything new bothers them. The last third is somewhere in the middle. It’s important to work with the innovative third and try to get the most out of the neutral third,’ says Jiří Krist, vice-chair of the National Network of Local Action Groups and president of the Opavia Local Action Group. According to Krist, interest in energy sharing is rising because municipalities see that retailers are increasingly willing to purchase their energy surpluses at lower prices. 

We met Krist during a Local Action Group conference called LEADERfest in the South Bohemian town of Tábor. Daniel Urbánek, also a speaker at the conference, works as an energy technician for Tábor’s municipal energy community called BYTES. Expected to launch by the end of 2025, BYTES will involve 74 participants, mostly local firms and contributory organisations. ‘This project should have a yearly output of about 1,100 MWh. I like to compare it to one block of the Temelín nuclear plant, which produces the same amount of energy in one hour,’ Urbánek says with a humble smile. 

The BYTES project initially had slightly higher ambitions, with hopes of involving households in energy sharing as well. In the end, these plans had to be scaled back due to several complications. ‘It was technically very demanding – we only had a few months because of the subsidy conditions. Had there been more time, we could have been more ambitious,’ Urbánek explains, referring to the subsidy for establishing energy communities. 

This subsidy call was published in November 2023, before parliament passed the amendment to the Czech Energy Act, and all supported activities must be concluded by the end of 2025. This call illustrates the Czech subsidy framework for community energy – an uncertain and unpredictable foundation on which to build.  

Due to these tight deadlines, the BYTES project shifted towards a model closer to communal energy. Krist, who coordinates ENERKOM Opavsko in the Opava region – one of the first organisations in the country to participate in community energy projects – watched this change with a critical eye. In his view, without household participation in energy sharing, community energy cannot effectively tackle energy poverty. ‘If the municipality has energy surpluses, isn’t it sensible to offer them to the most vulnerable households?’ he asks. 

Decentralising a highly centralised market 

Community energy pioneers are entering a market long dominated by a handful of major players – none of whom have had much incentive to support the development of decentralised, non-profit alternatives. While well-intentioned, the Energy Act amendment faced strong lobbying from energy distributors and certain energy-retailer trade unions. 

Most Czech power plants are state-owned, led by ČEZ, followed by billionaire Pavel Tykač’s Sev.en, Sokolovská uhelná, and Daniel Křetínský’s EPH. Electricity is distributed to Czech households by three distribution system operators. As shown on the map below, the majority of distribution is handled by a ČEZ subsidiary (in blue), while South Moravia and South Bohemia are administered by EG.D (in red), a private company owned by a foreign national. Prague has its own, indirectly municipally owned PRE distribution network (in white). Energy retailers – around 350 in total – then purchase this electricity and resell it to end users. 

Distribution system operators are unavoidable players in the electricity market, and as shareholders in the Energy Data Centre, they should be facilitating energy sharing. Yet energy communities rarely encounter a cooperative approach. These operators often refuse to connect the renewable energy sources that communities depend on, delaying connections while citing insufficient grid capacity. While Pašek acknowledges that grid capacity is a genuine issue, he believes the operators should be better prepared to connect renewables, as their deployment is part of a long-term national strategy. 

Energy communities can also face roadblocks from energy retailers. As Jagoš explains, ‘They claim we’re costing them money and that they need to reflect that in their electricity prices.’ This was the experience of CEJIZA, tasked with selecting an energy supplier for the South Moravian region. Some retailers even offered contracts that explicitly forbid energy producers from participating in energy sharing. 

Better protection of energy communities against retailer discrimination was enshrined in an Energy Act amendment approved in spring 2025. For its part, the Ministry of the Environment has stated it will consider further amendments if it receives information that energy communities continue to face discrimination from retailers. 

Communities take charge 

The country’s first heatwave in June 2025 highlights why energy communities remain so crucial, offering a glimpse of a future Czech Republic still dependent on fossil fuels. Recent Eurostat data show that the Czech Republic is trailing the rest of the EU when it comes to renewable energy deployment. Renewable sources account for just 20 per cent of the country’s total energy production – roughly half the EU average. 

Recent geopolitical events, including Israeli and American strikes on Iran and ensuing concerns over the closure of the Hormuz Strait – a route supplying one-fifth of the world’s petroleum – have highlighted the volatility of global energy markets. For Czech energy prices, the ongoing threat of liquefied gas supply interruptions remains significant. For communities, this makes local energy production and sharing not only convenient but increasingly economically sensible. 

‘In the long term, this is an investment in municipal stability, self-sufficiency, and better cost control,’ says Martin Mareda, second deputy mayor of Tábor and member of the Czech Pirate Party. In June 2025, the city council endorsed the establishment of the BYTES energy community. 

Jagoš believes the future will push communities to share energy more widely. Energy communities also play an educational role: ‘I see it as a driver for behavioural change. People learn a lot about how electricity works – knowledge that will be essential in the future,’ he explains. As the path becomes increasingly established, sharing should become simpler. ‘This is just the beginning. We’re the first, so it’s up to us to make it happen,’ Jagoš adds. 

Energy communities can help municipalities in the Czech Republic achieve self-sufficiency. Supporting them and creating the right conditions for their development is not only a contribution to climate protection but, more importantly, an investment in a secure and resilient country – one capable of withstanding global pressures. 

A Regional Response to Air Quality Crisis

Air pollution remains one of the most pressing environmental and health challenges facing the Western Balkans. Cities across the region regularly exceed WHO safety limits, particularly during winter months when heating demands increase pollution levels. The „Breathe Clean“ campaign emerges as a collaborative response, bringing together over 75 organizations from the Climate Bridges Network to tackle this interconnected challenge.

„Air pollution doesn’t recognize borders, and neither should our response,“ explains Zana Vokopola, Executive Director of the Urban Research Institute. „Through coordinated action across Western Balkan countries, we’re demonstrating that regional climate solutions can address local health concerns while building stronger communities.“

Local Solutions Driving Change Across Ten Cities

Each participating city will host activities designed to address local air quality challenges while connecting to regional climate action and cross-border cooperation. Events will take place in Tirana, Pogradec, Librazhd and Berat (Albania), Sarajevo, Banja Luka and Nova Bila (Bosnia and Herzegovina), Pula (Croatia), Skopje (North Macedonia), and Podgorica (Montenegro).

The events will include expert panels on air quality, climate connections, and public health, alongside creative and community-driven activities. Across locations, programs will feature informational talks by environmental and health professionals, school workshops on clean air and sustainability, and the distribution of educational materials. Public spaces will host interactive exhibits, ranging from live air quality displays to artistic installations using recycled materials, designed to spark reflection and dialogue. Bicycle parades, eco-stations, and urban greening activities will promote sustainable mobility and connection to nature. Participants of all ages are expected to engage through creative walls, message boards, and social media actions, sharing personal pledges and visions for cleaner air. While each city will tailor the events to address its own pollution challenges, the shared campaign message will foster a strong regional voice for healthier environments and collective action.

Join the Movement: Learn more about the Climate Bridges Network and discover how you can get involved by exploring the network platform. For the latest updates and event agendas, visit our news section.

A Blueprint for Regional Climate Action

The „Breathe Clean“ campaign represents more than a single-day initiative. Developed through participatory workshops involving Climate Bridges Network partners, the campaign serves as a replicable model for addressing interconnected environmental challenges across borders. The campaign’s innovative approach integrates multiple environmental themes under the air pollution umbrella, recognizing that poor waste management, transport-related emissions, energy-inefficient buildings, and industrial practices all contribute to both local air quality problems and global greenhouse gas emissions. This holistic perspective allows communities to address immediate health concerns while contributing to broader climate action.

„What makes this campaign particularly powerful is its adaptability,“ notes the campaign development consortium team. „Each city can tailor activities to their specific pollution sources and community needs while maintaining connection to the broader regional movement. This creates a template that other cities and regions can adopt and customize for their own contexts.“ The campaign’s emphasis on avoiding polarizing narratives while focusing on relatable benefits such as improved health, economic savings, and community resilience offers a pragmatic approach to climate communication in regions with high climate skepticism. By positioning environmental action as grassroots-driven rather than top-down, the campaign builds trust and encourages broader participation.

Download the full campaign concept here.

Looking Beyond September 25th

The „Breathe Clean“ campaign extends well beyond the September events, with online components, educational materials, and ongoing community engagement activities planned throughout 2025 and 2026. The Climate Bridges Network’s member organizations will continue sharing campaign materials, supporting local initiatives, and fostering the regional cooperation that makes such coordinated action possible.

The campaign’s success metrics will include social media engagement, event participation, media coverage, and qualitative feedback from communities. However, the ultimate measure of success lies in the campaign’s ability to demonstrate that regional cooperation can address local environmental challenges while building the foundation for larger-scale climate action.

As cities across the Western Balkans and beyond grapple with air quality challenges, the „Breathe Clean“ campaign offers both immediate solutions and a platform for collaborative environmental action. By breathing clean air together, these cities are showing that the path to climate resilience runs through community engagement, regional cooperation, and shared commitment to healthier futures.

If you’re interested to engage, please contact us at netw...@....com

This project is part of the European Climate Initiative (EUKI). The German Federal Government additionally contributes to the project through the Support for Climate Dialogue within the Framework of the Regional Climate Partnership with the Western Balkans, commissioned by the Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.

EUKI project A+ Approach to Enhance Energy Transition is equipping local authorities and regional leaders with the tools and knowledge to access EU funding, develop effective decarbonisation plans, and implement just and sustainable energy projects. By fostering collaboration among local authorities, civil society, and EU institutions, the initiative ensures that vulnerable regions and groups are actively included in the transition, paving the way for a more equitable and resilient energy future. Two inspiring examples from EU countries demonstrate how the energy transition is both possible and impactful.

Sailing the EU renovation wave: Estonia’s factory-made building solution

Across Europe, outdated apartment buildings are draining energy and money. Yet a faster, smarter solution is emerging. In Estonia, factory-based building renovation is transforming old structures into energy-efficient homes in a fraction of the time. Using digital scanning and prefabricated panels, the process slashes on-site disruption and cuts heating costs dramatically. With 70% of European buildings still underperforming, this method shows a viable path towards meeting the EU’s 2050 climate targets. Estonia’s example proves that large-scale renovation can be both efficient and economically viable.

„We actually took the decision to renovate the building several years before the reconstruction work began, and the reason was very simple. The building looked very run-down, heating bills were sky-high, and the balconies were in danger of collapsing. So there wasn’t really much deliberation; there was simply no other option. Our experience with this factory-based reconstruction was very positive. The building was renovated very quickly, with the entire process lasting a bit over 6 months. And we didn’t have to put up any scaffolding, so no sunlight was blocked. Considering the building has 90 apartments and it’s five stories high, the work was completed in a very short time. Heating bills dropped significantly. For example, I can only speak for my one apartment: in the winter of 2022/2023, the heating bill was over EUR 100. But this January it was somewhere around EUR 50 or even EUR 45. That’s a really significant and tangible difference“, Triin Raadik from Tartu shares her experience.

Rebuilding for resilience: Energy-efficient home renovations in Hungary

Over 85 per cent of Hungarian households, around 3.85 million homes, are highly energy inefficient (DD or worse energy performance) and in need of modernisation. This video presents examples from across the country where energy renovations such as insulation, heating system upgrades, and solar panel installations have been implemented fully or in part with the support of EU and/or state funding. These cases demonstrate that, with proper planning and access to national or EU programmes, energy-efficient renovations are both feasible and beneficial. Engaging qualified professionals throughout the process, from planning to implementation, can greatly ease the burden on homeowners and ensure lasting energy savings. It is essential that public funding initiatives prioritise residential energy efficiency, with tailored financial schemes that separately address the needs of both average and low-income households.

Ferenc Palotás from Budakeszi comments on the changes in his household: “The house has been in the family since the 1920s and has not been seriously renovated since then so we had to replace practically all the wiring and all the windows. As part of this, we were able to contact an application consultant company who helped us to apply for the windows and heating upgrades and solar installation programme, and it was a 100% grant funded, non-refundable. In addition to insulation and solar panels, an air-to-water heat pump was installed to modernise the heating. The biggest cost to the house was the gas bill but since we no longer use gas, this has disappeared completely. To run the heat pump, we have a preferential electricity contract with the supplier so the cost is also much lower. Electricity needs of the house are absolutely covered by the solar panel on sunny days while in the winter we have to pay some small electricity bill, so the maintenance fee for the house has been reduced significantly.“

With initiatives like EUKI project A+ Approach to Enhance Energy Transition, local authorities in CEE countries are gaining the tools and support they need to lead the decarbonisation process and drive a fair, inclusive energy transition. By improving access to EU funds and building local capacity, these efforts are helping communities not only meet Europe’s climate goals but also create a more resilient and sustainable future for all.

EU policy-makers are negotiating drastic changes proposed by the EU Commission to water down these rules as part of the first Omnibus on Simplification. The sudden U-turn and rushed legal process risks undermining momentum among the business community. Weakening the EU laws would roll back the progress made on transparency, data quality, and long-term climate planning at a time when consistency and ambition are most critical.

Our analysis shows how companies are responding to EU sustainability legislation, revealing positive developments in the transparency and quality of disclosures while also highlighting some persisting challenges:

Climate change and GHG emissions

• Ambitious climate targets have become standard business practice, with more and more companies committing to net-zero and aligning with EU goals. 
• Thanks to the EU Sustainability Reporting Standards, climate transition plans are increasingly structured around decarbonisation levers, making disclosures clearer and more comparable. 
• Forward-looking disclosures, such as planned investments and implementation challenges, are on the rise but still uneven. These insights are essential for demonstrating credible, future-ready climate strategies.
• GHG reporting across all scopes is also established among businesses, with the ESRS driving better data quality and consistency. 

Double materiality and due diligence

• The most effective disclosures are those that clearly reflect the company’s specific context—particularly its approach to the value chain and prioritisation. Companies disclosing less useful information tend to forgo specificity in favour of lengthy and generic process descriptions.
• Strong disclosures link directly to due diligence processes, yet many companies offer vague references without showing how due diligence shapes materiality assessments.
• The ESRS help companies balance broad strategic reporting with more detailed information on their impacts, risks, and opportunities. But most disclosures are still too vague—often missing how key issues affect people or the environment, or how this influences the company’s strategy and business model.

Our analysts reviewed and assessed the sustainability information disclosed by 50 influential companies from the financial, textile, energy, agrifood and beverages, pharmaceuticals, mining and transportation sectors.

The complete research will be released September 2025, alongside a compilation of best practices.

ACCESS ALL PRELIMINARY FINDINGS

Businesses require clarity, certainty, and stability to invest in sustainability reporting systems that meet market and stakeholder demands. The proposed rollbacks threaten not only environmental progress but also the credibility of EU leadership in sustainable finance. To preserve the achievements of the past decade and foster a forward-looking and competitive business environment, policy-makers in the EU Parliament must reject measures that weaken the CSRD and CSDDD and instead reinforce their consistent, effective application.

This research has been conducted as part of the project „Company Climate Transition„ which aims to support the practical implementation of EU sustainability legislation, particularly around climate transition planning, by providing high-quality, publicly accessible research and expert guidance to businesses, policymakers, and civil society across Central and Eastern Europe.

Contact regarding the project and preliminary findings: Susanna Arus at  mail...@....org  or Lorena Bisignano at  mail...@....org . 

The training utilized innovative educational materials and approaches developed through three EUKI-funded projects: „Bridging European and Local Climate Action“ (BEACON), „Towards the Introduction of Climate Action in the Educational Curriculum of Bulgarian Schools“ (TICA), and VISIONS2045. Each of these initiatives has contributed significantly to embedding climate literacy and behavioral change strategies within the Bulgarian education system.

Building on the Legacy of BEACON

The BEACON project, laid the groundwork for engaging children and young people in energy-saving behavior. Since its inception, over 150 teachers, 2,000 students, and 60 schools and kindergartens across 12 municipalities have participated. By raising awareness and changing behavior patterns, BEACON demonstrated the benefits of energy savings and emissions reduction—simply through student-led initiatives. This summer’s training continued that legacy, emphasizing the role of teachers as facilitators of change within their educational communities. The “Vision workshop” Toolbox, developed during the BEACON project was distributed to participants.

Institutionalizing Climate Education through TICA

The TICA project addressed the need for structured, ongoing teacher training in climate change and energy efficiency. Through the collaborative efforts of the Independent Institute for Environmental Issues (UfU, Berlin), the National Trust EcoFund, Bulgaria (NTEF), and Bulgaria’s National Center for the Qualification of Pedagogical Specialists, TICA involved university professors and PhDs to develop training programs and educational packages tailored for Bulgarian teachers. These resources and the experience gathered by the university team formed the backbone of the June 2025 training, helping participants explore how to partially integrate climate topics into various subjects and classroom activities.

VISIONS2045: Planning for Climate-Neutral Schools

A forward-looking dimension of the training came from the VISIONS2045 project, which focuses on guiding schools towards climate neutrality. Teachers were introduced to tools for calculating their schools’ carbon footprints and were introduced to the concept of Vision Workshops, to develop together with their students action roadmaps for reducing their school’s environmental impact. This process not only empowers schools to become role models in their communities but also involves students in real-life problem-solving and climate action.

Supporting National Goals through Energy Efficiency in Municipal Schools and Kindergarten

The training is mandatory for schools and kindergartens supported by the Energy Efficiency in Municipal Schools and Kindergarten sub-program, established through a bilateral agreement between Bulgaria and Germany concerning the sale of Annual Emissions Allocations (AEAs). The program prioritizes projects that reduce greenhouse gas emissions and increase energy efficiency in municipal educational buildings. While the physical upgrades to buildings are crucial, this training emphasizes the parallel importance of human capital—educators—who play a key role in ensuring long-term behavioral change and sustainable school management.

By merging infrastructural investment with targeted educational initiatives, the sub-program and EUKI projects together represent a holistic approach to climate action in schools—an approach that is already delivering measurable environmental benefits and shaping the mindset of future generations.

For more information on the training or the EUKI projects involved, please contact the National Trust EcoFund, Bulgaria – mail...@....org

On May 29, 2025, the Urban Research Institute (URI) hosted a successful national exchange event in Tirana as part of the Climate Bridges Network project. The event brought together over 30 representatives from civil society organisations (CSOs), local and national government institutions, and climate experts from across Albania for a day of presentations, open discussions, and valuable networking.

Introducing the Climate Bridges Vision

The event opened with comprehensive presentations about the Climate Bridges Network project and its ambitious goals for fostering transnational climate cooperation across the Western Balkans. Participants learned about the project’s three main pillars: awareness-raising campaigns, governance innovation through Local Green Agendas (LGAs), and capacity building initiatives.

The URI project team presented the concrete progress made so far, including the ongoing process of developing the LGAs in pilot municipalities like Elbasan, the growing network that now spans over 60 organisations across 8 countries. The presentation highlighted how Albania fits into this broader regional framework and the opportunities for Albanian organisations to contribute to and benefit from transnational collaboration.

Open Dialogue and Shared Experiences

Following the presentations, the event shifted to open discussion sessions where participants shared their experiences, challenges, and ideas about climate action in Albania. Representatives from various CSOs discussed their current climate initiatives, while government officials shared insights about national climate policies and local implementation challenges.

The discussions revealed both common ground and diverse perspectives on climate action priorities. Environmental CSOs emphasised the importance of public awareness and community engagement, while municipal representatives highlighted the practical challenges of implementing climate policies with limited resources.

Learning from Project Insights

Participants showed particular interest in learning about the project’s Best Practices Toolbox, which is expected to compile successful climate initiatives from across the Western Balkans. The presentation of good practices from neighbouring countries sparked engaging conversations about what could be adapted to the Albanian context.

The concept of LGAs generated significant discussion and curiosity about how the participatory approach could be applied with the engagement of local communities. The collaborative methodology that brings together CSOs, local government, and community representatives resonated with many participants who saw it as a potential model for improving local climate governance.

Building Connections and Networks

One of the event’s greatest strengths was the informal networking that took place throughout the day. Participants exchanged contact information, discussed potential collaborations, and explored shared interests. Many attendees noted that they had learned about organisations and initiatives they were previously unaware of, despite working in the same field. Representatives from the Albanian Environmental Coalition connected with local municipal officials, while youth environmental groups found common ground with more established CSOs. Several participants mentioned that the event helped them understand the broader landscape of climate action in Albania and identify potential partners for future initiatives.

Creating Momentum for Future Collaboration

The event successfully raised awareness about the Climate Bridges Network and its potential for Albanian organisations. Several new organisations expressed interest in joining the network, attracted by the opportunity to participate in the shared vison, transnational cooperation and access resources like the Best Practices Toolbox.

Participants appreciated learning about upcoming project activities, including the planned awareness campaigns and the mid-term transnational event.

The event generated genuine enthusiasm for increased collaboration in Albania’s climate community. Participants left with a better understanding of each other’s work and a shared sense of the potential for joint action.

Many attendees expressed appreciation for the opportunity to meet colleagues from different sectors and regions of Albania in an informal, collaborative setting. The event demonstrated the value of creating spaces for climate stakeholders to connect and learn from each other.

Looking Ahead

The Climate Bridges Network will continue to support national and regional collaboration by offering tools, resources, and opportunities for co-creation.

We extend a heartfelt thank you to everyone who participated and contributed their time, energy, and expertise. Together, we are forging new paths for joint climate solutions and creating a stronger, more connected response to the climate challenges of our time.

Want to get involved?

Visit www.climate-bridges.com to learn more about the network, upcoming events, and how your organization can become a part of this growing community of changemakers.