Domestic laws governing environmental protection are molding the emerging EBT industry. The country’s accession to the EU has caused it to redefine its priorities and accelerate the process of environmental management. The Government has stressed on participation in the EU’s policymaking process, especially for the environmental industry. Domestically, it has been actively promoting environmental impact assessment, water and wastewater treatment, and solid waste management.
“The Government encourages new construction in infrastructural projects and adoption of the latest building technologies in such projects,” says Archana Amarnath, Frost & Sullivan Research Analyst for the ERA group. “It has been primarily focusing on the lighting equipment segment and the national policy for combating light pollution has successfully influenced industry participants to adhere to quality standards.”
The Government has been looking to channel EU funds mainly toward projects aimed at environmental protection. These projects include setting up of water and wastewater treatment systems and upgrades of water supply network. It has also pushed for eco-friendly products and cleaner development mechanisms.
The Czech Republic has one of the most stable economies among Central and Eastern European countries. The gross domestic product (GDP) is expected to grow between 3.0 and 4.5 percent in 2007. After the transition to a market economy, private companies gradually bought many EBT companies that were previously owned by the Government.
The industry is now facing a huge wave of privatization and this trend is expected to stimulate demand and improve the quality of environmental equipment and services. There is also a gradual shift in Government policies from ‘end-of-pipe technologies’ to waste minimization and pollution prevention at source.
The industry majors are mostly large multinational groups. Most local enterprises are partially owned by Western European companies and they usually get local contracts with suppliers and manufacturers. Environmental companies need to leverage their services and expertise in recycling, soil remediation, hazardous waste collection and management, and dioxin remediation for chemical industries.
Until 2006, equipment manufacturers accounted for most of the R&D activities. The industry can further its technological advances efforts by inviting foreign participation in R&D and increasing industrial R&D.
“The water and wastewater treatment equipment sub-segment enjoys prime focus among the sub-segments of the Czech Republic environmental industry,” notes Amarnath. “Almost all municipalities possess the two-stage water treatment facilities.”
There have been immense infrastructural developments in the EBT industry, with municipalities and other Government bodies aiding turnkey projects and integration with private companies.
